en SOURCES MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VEESIONB PRINTER VERSION Problem 7-2A CISCO, is a component of the company's finished product. The following information was colected from the accounting records and production data for the year ending December 31, 2017. 1. 8,100 units of CISCO were produced in the Machining Department. work The management of Shatner Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy k from an outside supplier. The part, call Part on) 2. Variable manufacturing costs applicable to the production of each CiSCO unit were: direct materials $4.58, diredt labor $4.22, indirect labor $0.43, utilities so.35. 3. Fixed manufacturing costs applicable to the production of CISCO were: Part ion) Part ion) Depreciation $2,100 $960 340 580 $3,520 $1,880 Property taxes Insurance 490 930 by All variable manufacturing and direct fixed costs will be eliminated if CISCo is purchased. Allocated costs will have to be absorbed by other production departments 4. The lowest quotation for 8,100 CISCO units from a supplier is $78,273. 5. If CISCO units are purchased, freight and inspection costs would be $0.35 per unit, and receiving costs totaling $1,270 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 e.g. -45 or parentheses e.g. ( 45), Net Income Increase (Decrease) Make CISCO Buy CISCO Direct material All Rights Reserved. A Division of Jhn k me anything