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led CISCO. Use make or and f and consideratantys inancial ng Company is trying to decide uy it from an outside supplier. The part, called collected from the accounting records and production data for P202A (LO 3), Writing The mu s hranufacturing Company whether to continue manufacturing a part or to buy it from an outside suppe is a component of the company finished product The following information was collected from the accou year ending December 31, 2022 1. 8.000 units of CISCO were produced in the Machining Department 2. Variable manufacturing costs a b le to the eduction of each CISCO unit als $4.80, direct labor $4,30, indirect labor 0:43, utilities S0.40. 3. Fixed manufacturing costs applicable to the production of CISCO were: on of each CISCO unit were direct materi- Cost Item Depreciation Property taxes Insurance Direct $2.100 Allocated $900 900 S8.500 $1,700 All variable manufacturing and direct fixed costs will be eliminated if CISCO is pure Allocated costs will not be eliminated CISCO is purchased. So I CISCO is purchased, the fixed manufacturing costs allocated to CISCO waluwe to be absorbed by other production departments 4. The lowest quotation for .000 CISCO units from a supplier is $10,000 S. If CISCO units are purchased, free and inspection is would be 50.35 per unit, and receiving costs totaling S1300 per year would be incurred by the Machining Department