May I please have help understanding this problem?

The management of Shatner Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part, called CISCO, is a component of the company's finished product.

The following information was collected from the accounting records and production data for the year ending December 31, 2020.

1.8,000units of CISCO were produced in the Machining Department.

2. Variable manufacturing costs applicable to the production of each CISCO unit were:

direct materials $5.23, direct labor $4.71, indirect labor $0.48, utilities $0.39.

3. Fixed manufacturing costs applicable to the production of CISCO were:

\fDirect material Direct labor Indirect labor Utilities Depreciation Property taxes Insurance Purchase price Freight and inspection Receiving costs Total annual cost (b) Based on your analysis, what decision should management make? The company should v . (c) Would the decision be different if Shatner Company has the opportunity to produce $3,000 of net income with the facilities currently being used to manufacture CISCO