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Current Attempt in Progress The management of Shatner Manufacturing Company 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 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, 2017 1.8,100 units of CISCO were produced in the Machining Department 2. Variable manufacturing costs applicable to the production of each CISCO unit were: direct materials $4.51, direct labor $4.74, Indirect labor $0.42, utilities $0.37 3. Fixed manufacturing costs applicable to the production of CISCO were Cost Item Direct Allocated Depreciation $2.100 $940 Property taxes 940 590 $1.920 500 390 Insurance $3.540 All variable manufacturing and direct fixed costs will be eliminated CISCO is purchased. Allocated costs will have to be absorbed by other production departments 4. The lowest quotation for 8.100 CISCO units from a supplier is $81.698. 5.1 CISCO units are purchased freight and inspection costs would be 50,36 per unit and receiving costs total 51300 per year would be incurred by the Machining Department, Cal Drawn an incrementalanci Cison Internetams ne alternanthelon wine theme (a) Prepare an incremental analysis for CISCO. (Enter negative amounts using either a negative sin preceding the number as 45 or parentheses es. (451 Net Income Increase (Decrease) Make CISCO Buy CISCO Direct material Direct labor Indirect labor Utilities Depreciation Property taxes insurance Purchase price Freight and inspection Receiving costs Total anual cost (b) Based on your analysis, what decision should management make? The company should (c) Would the decision be different if Shatner Company has the opportunity to produce $3,000 of net income with the facilities currently being used to manufacture CISCO

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