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Which of the following questions would have been most important for Black & Decker to ask before it decided to produce the thermal leak detector?

A) What is the most effective way to package the product to protect it and communicate its value? B) How can retailers be persuaded to devote enough shelf space to the thermal leak detector? C) Do customers associate Black & Decker with household products designed to conserve energy? D) What are the advertisement rates for media that Black & Decker has used in the past to promote similar products? E) Will Black & Decker be able to generate free media coverage by communicating the importance of identifying energy leaks? c

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 22,000 Fixed costs $40,000 Variable costs $66,000 Total cost to produce $106,000 Jackson Corporation can purchase the part from an outside supplier for $4.25 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) $47,500 greater than if the company bought the part B) $20,000 greater than if the company bought the part C) $7,500 greater than if the company bought the part D) $32,500 less than if the company bought the part