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, called WISCO, is a component of the companys 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 7,500 units of WISCO during the year.
2.	Variable manufacturing costs applicable to the production of each WISCO unit were direct materials $5.00, direct labour $5.00, indirect labour $0.43, and utilities $0.33.
3.	Fixed manufacturing costs applicable to the production of WISCO were as follows:

Cost Item		Direct		Allocated
Depreciation		$1,900		$895
Property taxes		535		120
Insurance		915		560
		$3,350		$1,575

	The company will eliminate all variable manufacturing and direct fixed costs if it purchases WISCO. Allocated costs will have to be absorbed by other production departments.
4.	The lowest quotation for 7,500 WISCO units from a supplier is $79,700.
5.	If WISCO units are purchased, freight and inspection costs would be $0.46 per unit, and the machining department would incur receiving costs totalling $1,305 per year.

(a)

Prepare an incremental analysis for WISCO. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g.-15,000 or parenthesis, e.g. (15,000).)

		Make Wisco		Buy Wisco		Net Income Increase (Decrease)
		$				$
Total annual cost		$		$		$