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nent of the company shinished product The following information was collected from the accounting records and production data for the year ending December 31, 2022

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nent of the company shinished product The following information was collected from the accounting records and production data for the year ending December 31, 2022 1.7.900 units of CISCO were produced in the Machining Department. 2. Variable manufacturing costs applicable to the production of each CISCO unit were: direct materials $ 5.11, direct labor 5 454 indirect labor $0.46, utilities $0.41. 3. Fixed manufacturing costs applicable to the production of Cisco were: Cost Item Depreciation Direct $2.000 Allocated 5880 430 Property taxes 470 Insurance 910 660 $3.380 5 1.970 All variable manufacturing and direct fixed costs will be eliminated if Cisco is purchased. Allocated costs will not be eliminated it Cisco is purchased. So if CISCO is purchased the fired manufacturing costs allocated to CISCO will have to be absorbed by other production departments 4. The lowest quotation for 2.000 CISCO units from a supplier is $83.562 5.1 CISCO units are purchased, freight and inspection costs would be $0.34 per unit, and receiving costs totaling $ 1.270 per year Freight and inspection Receiving costs Total anual.com $ fb Based on your analysis, what decision should management make? The company should les Would the decision be different i vanhor Company has the opportunity to produce $3,000 of rut income with the facilities currently being used to manufacture CISCO Textbook and Media Attempts of used to SALM 0 0 Type here to search

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