estion 2 of 4 -71 View Pollides 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 compan/'s finished product The following information was collected from the accounting records and production data for the year ending December 31, 2020. 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 $4.58, direct labor $4.50, Indirect labor 50.48, titles 50.44 3. Fored manufacturing costs applicable to the production of CISCO were Cost Item Direct Allocated Deprecation $1.900 5930 330 440 Property tart Insurance 920 620 $3.350 $1.990 Al variable manufacturing and direct foued costs will be eliminated WCISCO is purchased. Allocated costs will not be limited CISCO is purchased. So it CISCO purchased the hand manufacturing costs allocated to CISCO wolve to be absorbed by other production departments 4. The lowest quotation for 8,100 CISCO units from a supplier is 581305 5.1 CISCO units are puced, tree and inspection costs would be 50.35 per unit, and receiving costs totaling 51.260 per year would be incurred by the Machining Department Prepare an incremental analysis for CISCO (Enter negative amounts using there in preceding the umbres 450 parents (450 Make CISCO Net Income Incre Decrease tluy CISCO production departments 4. The lowest quotation for 8.100 CISCO units from a supplier is $81.505. 5.1 CISCO units are purchased, freight and inspection costs would be $0.35 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 sin preceding the number es. 45 or parentheseses (451) Net Income Increase (Decrease) Make CISCO Buy CISCO Direct material Direct labor Indirect labor Uitles Depreciation Property taxes Insurance Purchase price Freight and inspection Recen costs Totalans cost Question 2 of 4 - / 1 Utilities Depreciation Property taxes Insurance Purchase price Freight and inspection Receiving costs Total anual cost 5 (b) Based on your analysis, what decision should management maken? The company should I Would the decision be different Shatner Company has the opportunity to produce $3.000 of net income with the facilities Currently being used to manufacture CISCO2 Textbook and Media