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 26,000 Fixed...



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 annually26,000
Fixed costs$41,000
Variable costs$67,000
Total cost to produce$108,000

Jackson Corporation can purchase the part from an outside supplier for $4.50 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 $98,000?



Question 23 options:





























$2.98










$2.19










$3.77










$1.52






Jun 11, 2022
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