Part P40 is a part used in the production of air conditioners at Jackson Corporation. The following costs and data relate Number of parts produced annually Fixed costs Variable costs Total cost to produce 26,000 $43,000 $70,000 $113,000 Jackson Corporation can purchase the part from an outside supplier for $4.62 per unit. If they purchase from the outside supplier, 50% of the fixed costs would be avoided. If Jackson Corporation makes the part, how much will its operating income be?
a. $28,620 greater than if the company bought the part
b. $141,620 greater than if the company bought the part
c. $21,500 greater than if the company bought the part
d. $71,620 greater than if the company bought the part
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