The management of Borealis Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part, caled WISCO, 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. The machining department produced 8,000 units of WISCO during the year 2. Variable manufacturing costs applicable to the production of each WISCO unit were direct materials 55.00, direct labour $4.90, indirect about 50.45, and 3. Fixed manufacturing costs applicable to the production of WISCO were as follows: is $9.34 Allocated Direct $2.050 Cost Item Depreciation Property taxes Insurance 535 125 920 $3,505 $1,595 The company will eliminate all variable manufacturing and directed costs if it purchases WISCO. Allocated costs will have to be absorbed by other production departments 4. The lowest quotation for 8,000 WISCO units from a supplier is 505,150 5. I WISCO units are purchased, freight and inspection costs would be $0.43 per unit, and the machining department would incur receiving costs totaling $1,285 per year. 15,000 or parenthesis, Prepare an incremental analysis for WISCO. (If an amount reduces the net income then enter with a negative sign preceding the number, (15,000).) Net Income Increase (Decrease Make Wisco Buy Wisco STANDARD PRINTER VERSION Total annual cost Based on your analysis, what decision should management make? The company should WISCO Would the decision be different if Borealis had the opportunity to produce $3,350 of net income with the facilities currently being used to manufacture WISCO (18 an amount the net income then enter with a negative sign preceding the number, e.g.-15,000 or parenthesis, .g. (15,000).) . Net income will be Make Wisco Buy Wisco Net Income Increase (Decrease) Total annual cost Opportunity cost Total cost Question Attempts: 0 of 2 used SAVE FOR LATER SUBMIT A