/8 The management of Wildhorse 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, 2022 1.8.000 units of CISCO were produced in the Machining Department 2. Variable manufacturing costs applicable to the production of each CISCO unit were direct materials $5.30, direct labor $4.69. indirect labor $0.45, utilities 50.44 3. Fixed manufacturing costs applicable to the production of CISCO were Cost Item Depreciation Direct Allocated $2,000 5880 Property taxes Insurance 510 410 900 610 $3,410 $1,900 All variable manufacturing and direct foved costs will be eliminated it Cisco is purchased Allocated costs will not be eliminatedf CISCO is purchased 56 ir CSCO is purchased, the food minufacturing costs allocated to CISCO will have to be absorbed by other production departments 4 The lowest quotation for 8000 CISCO units from a suppler 587 5PC SFCISCO are purchased freight and inspection cost would be 50.36 and roying cooling 51280 per would be incurred by the Machlong Departmend Question 2 of 4 < < -18 (a) Prepare an incremental analysis for CISCO (Enter negative amounts using either a negative sign preceding the number eg-45 or parentheses eg (451) Make CISCO Buy CISCO Direct material $ $ Direct labor Indirect labor Utilit Depreciation Property taxes Insurance Purchase pric Freight and inspection Net income Increase (Decreasel 36F Clear A 3:38 PM 3/16/2022 Question 2 of 4 Purchase price Freight and inspection Receiving costs < > 18 Total annual cost $ (b) Based on your analysis, what decision should management make The company should c) Would the decision be different if Wildhorse Company has the opportunity to produce 53.000 of net income with the facilities currently being used to manufacture CISCO Textbook and Media Attempts 0 of 5 used Submit Ar 36F Clear 329 PM 3/10/2022