production of Part 245: Number of parts produced annually 20,000 Fixed costs $40,000 Variable costs $66,000 Total cost to produce $106,000 Andrew Corporation can purchase the part from an outside supplier for $4.25 per unit. If they purchase from the outside supplier, 40% of the fixed costs would be avoided. If Andrew Corporation purchases the part, how much will its operating income be? O A. $24,000 less than if the company made the part O B. $1,000 less than if the company made the part OC. $5,000 greater than if the company made the part OD. $3,000 less than if the company made the part Jason Corporation uses activity - based costing. The company produces two products: Snaps and Pops. The expected annual production of Snaps is 1,000 units, while the expected annual production of Pops is 3,000 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each of these three activity pools follows: Activity cost pool Assembly Testing Packing Estimated cost $ 4,550 $ 22,320 $ 1,738 Expected activity Snaps Tops 600 100 1,100 700 60 160 Total 700 1,800 220 The overhead cost per unit of Pops would be closest to O A. $3.53 O B. $9.54. O c. $10.59. OD. $26.80