chapter 23 question 2

23 question 2

Homework: Chapter 23 Question 2 of 2 4. The lowest quotation for 8.000 CISCO units from a supplier is $81,890 5. If CISCO units are purchased, freight and inspection costs would be $0.35 per unit, and receiving costs totaling $1,260 per year would be incurred by the Machining Department (a) Prepare an incremental analysis for CISCO. (Enter negative amounts using either a negative sign preceding the number eg -45 or parentheses eg (45)) Net Income Increase Make CISCO Buy CISCO (Decrease) Direct material Direct labor Indirect labor Utilities Depreciation Property taxes Insurance Purchase price BOURSE Purchase price : Freight and inspection Receiving costs Total annual cost 3 (h) Based on your analysis, what decision should management make? The company should (c) Would the decision be different if Oriole Company has the opportunity to produce $3.000 of net income with the facilities currently being used to manufacture CISCO? eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Antwer