question 27

Part P40 is a part used in the production of air conditioners at Jackson Corporation. The following costs and data relate to the production of Part P40: Number of parts produced annually Fixed costs Variable costs Total cost to produce 23,000 $40,000 $67.000 $107.000 Jackson Corporation can purchase the part from an outside supplier for $4.41 per unit. If they purchase from the outside supplier, 50% of the fixed costs would be avoided. If Jackson Corporation buys the part, what is the most Jackson Corporation can spend per unit so that operating income is equal to $99,000? (Round the final answer to the nearest cent.) O A. $4.30 OB. $2.57 OC. $3.43 OD. $0.98