Problem 23 02A a c (Video) The management of Bramble Manufacturing Company is trying to deade 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, 2020. 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 $4.57, direct labor $4.22, indirect labor s0.46, utilities $0.43. 3. Fixed manufacturing costs applicable to the production of CISCO were: Cost Ttem Direct Allocated Depreciation $2,100 Property taxes 560 Insurance $910 370 580 S3,570 $1,860 All variable manufacturing and direct fixed costs will be eliminated if CISCO is purchased. Allocated costs will not be eliminated if CISCO is purchased. So if CISCO is purchased, the fixed manufacturing costs allocated to CISCO will have to be absorbed by other production departrments. 4. The lowest quotation for 7,900 CISCO units from a supplier is $77,160. 5. Tf CTSCO units are purchased, freight and inspection costs would be 50.38 per unit, and receiving costs totaling $1,270 per year would be incurred by the Machining Department (a) Prepare an incremental analysis for CISCO. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase Make CISCO Buy CISCO (Decrease) Direct material Direct labor Indirect labor Property taxes Insurance Purchase price Freight and inspection Receiving costs Total annual cost (b) Based on your analysis, what decision should management make