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Current Attempt in Progress The management of Sandhill Manufacturing Compary is trying to decide whether to continue manufacturing a part or to buy it from

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Current Attempt in Progress The management of Sandhill Manufacturing Compary is trying to decide whether to continue manufacturing a part or to buy it from an outside supplifer. The part, called CISCO, is a component of the company's finished product. The following intormation was collected from the accounting records and production data for the year ending December 31,2022 . 1.7,900 units of C15CO were produced in the Machining Department. 2. Variable manufacturing costs applicable to the production of each CisCO unit were: direct materials $4.77, direct labor $4.44, indirect labor $0.40, utilities $0.42 3. Fixed manufacturing costs applicable to the production of CISCO were: All variable manufacturing and direct foxed costs will be eliminated if CISCO is purchased. Allocated costs will not be eliminated if CISCO is purchased. So if CISCO is purchased, the foxcd mamufacturing costs allocated to ClSCO will have to be absorbed by other production departments. 4. The lowest quotation for 7,900CISCO units from a supplier is $79,625. 5. It CISCO units are purchased, freight and inspection costs would be $0.38 per unit, and receiving costs totaling $1.310 per year would be incurred by the Machining Department. (a) Prepare an incremental analysis for CISCO, (Enter nesotive amounts using either a negotive sign preceding the number e.s45 or parentheses e.8. (45).) 18i (b) Based on your analysis, what decision should management make? The comparry should (c) Would the decision be different if Sandhili Compary tas the opportunity to produce 53000 at net income with the tacilties currently being used to mamifacture CiSCO

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