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outside supplier. The part, called WISCO, is a component of the comparry's finished product. The following information was collected from the accounting records and production

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outside supplier. The part, called WISCO, is a component of the comparry's finished product. The following information was collected from the accounting records and production data for the year ending December 31,2022 : 1. The machining department produced 7,900 units of WISCO during the year. 2. Variable manufacturing costs applicable to the production of each WISCO unit were direct materials $4.60, direct labour $4.50. indirect labour $0.44, and utilities $0.32. 3. Fixed manufacturing costs applicable to the production of WISCO were as follows: The company will eliminate all variable manufacturing and direct fixed costs if it purchases WiScO. Allocated costs will have to beabsorbed by other production departments. So if WISCO is purchased, the fixed manufactur ing costs allocated to WISCO will have to be absorbed by other production departments. 4. The lowest quotation for 7,900 WISCO units from a supplier is $78,289. 5. If WISCO units are purchased, freight and inspection costs would be $0.41 per unit, and the machining department would incur receiving costs totalling $1,300 per year. Prepare an incremental analysis for WISCO. (If an amount reduces the net income then enter with a negative sign preceding the number, eg-15,000 or parenthesis, eg (15,000). While alternate approoches are possible, irrelevant fixed costs should be included in both options When solving this problem.) Based on your analysis, what decision should management make? luestion Part Score Would the decision be different if Splish had the opportunity to produce $2,700 of net income with the facilities currently being used to manufacture WISCO? (If an amount reduces the net income then enter with a negative sign preceding the number, eg-15,000 or parenthesis, e. (15,000)) Question Part Score Save for Later

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