Crunchyroll ESPN Fafsa F Flipboard GameStop Google H Health Honda Credit Union Question 12 of 12 - / 1.75 E The management of Shatner 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, 2020. 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 $ 4.2, indirect labor $0.45, utilities $0.38. 3. Fixed manufacturing costs applicable to the production of CISCO were: Cost Item Depreciation Property taxes Direct $ 2.000 Allocated $ 930 500 410 Insurance 950 600 $3,450 $ 1,940 All variable manufacturing and direct fixed costs will be eliminated it CISCO is purchased. Allocated costs will not be eliminated if CISCO is purchased. So if CISCO is purchased, the fixed manufacturing costs allocated to CISCO will have to be absorbed by other production departments. 4. The lowest quotation for 8,000 CISCO units from a supplier is $ 83,660. 5. If CISCO units are purchased, freight and inspection costs would be $ 0.37 per unit, and receiving costs totaling $ 1.260 per year would be incurred by the Machining Department (a) Prepare an incremental analysis for CISCO. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45)) Net Income Increase (Decrease) Make CISCO Buy CISCO Question 12 of 12