12 FULL SCREEN PRINTEN VERSION 4 BACK The management of Borealis Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part, called WISCO, 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. The machining department produced 8,000 units of WISCO during the year. 2. Variable manufacturing costs applicable to the production of each WISCO unit were direct materials $4.80, direct labour $4.30, indirect labour $0.43, and utilities $0.40. 3. Fired manufacturing costs applicable to the production of WISCO were as follows: Cost Item Depreciation Property taxes Insurance Direct $2,100 500 900 $3,500 Allocated $900 200 600 $1,700 The company will eliminate all variable manufacturing and direct fixed costs it purchases WISCO. Allocated costs will have to be absorbed by other production departments 4. The lowest quotation for 8,000 WISCO units from a supplier is $80,000 3. If WISCO units are purchased, freight and inspection costs would be $0.35 per unit, and the machining department would incur receiving costs totalling $1,300 per year (d) What non-financial factors should management consider in making its decision