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ALCOW) is considering whether to process aluminum. The rolled aluminum can be sold for 10 points 8. The management of Aluminum Company of Washington (

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ALCOW) is considering whether to process aluminum. The rolled aluminum can be sold for 10 points 8. The management of Aluminum Company of Washington ( further raw aluminum ingots (blocks) into rolled sheet a S1,275 per ton. The raw aluminum ingots (blocks) can be sold without The raw aluminum ingots (blocks) are produced in batches of 40 tons. Each batch of raw aluminum requires 80 tons of a raw material called bauxite. The bauxite costs $775 per ton. ton. Rolled aluminum requires further processing of S425 per ton of ingots. Each ton of rolled aluminum requires 1.6 tons of raw aluminum ingots (blocks). Required: aPrepare an analysis to determine whether the company should sell the Raw Aluminum now or Process it Further into Rolled Aluminum 10 points 9. The Cisco Company incurred the following manufacturing costs in the production of 12,500 units: 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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