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10 points 9. The Cisco Company incurred the following manufacturing costs in the production of 12,500 u Direct Materials Direct Labor Variable Overhead Fixed Overhead

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10 points 9. The Cisco Company incurred the following manufacturing costs in the production of 12,500 u Direct Materials Direct Labor Variable Overhead Fixed Overhead Total Costs $40,625 64,625 35,875 56,250 $197.375 Cisco Company is considering the opportunity to purchase identical units from an outside supplier for $12.50 per unit. If they purchase the units from the outside supplier, Cisco can rent the unused manufacturing space for $20,100. Compute the differential cost between Making the units and purchasing them from an outside supplier. Should Cisco continue to make the units or should they purchase them? Explain. Show supporting computations for your

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