Problem 12-2 (Part Level Submission) The management of Blue Manufacturing Company is trying to decide whether to continue manufacturing a part component of the company's finished product. to buy it from an outside supplier. The part, called CISCO, is a 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 $4.53, direct labor $4.22, Indirect labor $0.43, utilities $0.35 3. Fixed manufacturing costs applicable to the production of CISCO were: Cost Item Depredation Property taxes Insurance Direct $2,100 490 930 $3,520 Allocated 5960 340 580 51,880 CALCULATOR FULL SCREEN PLINTEN VERSION As variable manufacturing and direct fixed costs will be eliminated if 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 $78,273. 5. of CISCO units are purchased, freight and inspection costs would be 50.35 per unit, and receiving costs totaling $1,270 per year would be incurred by the Machining Department (o Prepare an incremental analysis for CISCO. (If amount decreases net income then enter the amount using either a negative in preceding the number .. 15 or parenthesese.. (45).) Make CISCO Net Income Increase (Decrease) Huy CISCO Direct material $ $ Direct labor Indirect labor Utes Depreciation Property taxes Insurance Purchase price Utilities Depreciation Property taxes Insurance Purchase price Freight and inspection I Receiving costs Total annual cost $ Click if you would like to Show Work for this question Qren Show Work (b) hieman 202 ansons Ali John WVSS