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.com/eugen/it/mainuni in D S , 10 Helal System Announcements CALCULATOR Probler 12- The management of Point Manufacturing Company is trying to decide whether to continue
.com/eugen/it/mainuni in D S , 10 Helal System Announcements CALCULATOR Probler 12- The management of Point 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 finished product The towing information was collected from the accounting records and production data for the year ending December 31, 2017 1. 100 units of CISCO were produced in the Machining Department 2 Variable manufacturing costs applicable to the production of each CISCO nt were direct materials $5.10, director 54.189, Indirect labor 50.42, 0.35 Med manufacturing costs applicable to the production of CISCO were Direct $1,900 Allocated 3930 Cost Item Depreciation Property tax Ensurance 470 400 640 900 $3,270 $1,970 Al variable manufacturing and direct feed costs will be eliminated if CISCO is purchased. All costs will have to be absorbed by other production departments The lowest quotation for 8,800 CISCO units from a supplier is $87,328. St Cisco units are purchased, freight and inspection costs would be 10.38 perunt, and ceving costs totaling 11,290 per year would be incumed by the Machining Department Prepare an incremental analysis for CISCO. (If amount decreases net income then enter the amount using either a negative sigo preceding the number.o. -45 ar parentheses (45) Net Income Increase Make CISCO Buy CISCO (Decrease) Direct material Direct labor Indirect labor CES Prepare an incremental analysis for CISCO. (If amount decreases net Income then enter the amount using either a negat (45)) Net Income Increase (Decrease) Make CISCO Buy CISCO Direct material $ $ $ Direct labor udy Indirect labor Utilities Depreciation Property taxes Insurance Purchase price Freight and inspection Receiving costs Total annual cost LINK TO TEXT VIDEO: SIMILAR PROBLEM Based on your analysis, what decision should management make
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