The management of Shatner Manufacturing Company is trying to decide 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, 2017. 1.8,000 units of CISCO were produced in the Machining Department. 2. Variable manufacturing costs applicable to the production of each CISCO unit were: direct materials $4.61, direct labor $4.48, indirect labor $0.48, utilities $0.41. 3. Fixed manufacturing costs applicable to the production of CISCO were: Cost Item Depreciation Property taxes Insurance Direct $2,000 480 890 $3,370 Allocated $920 410 600 $1,930 All 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 8,000 CISCO units from a supplier is $80,520. 5. If CISCO units are purchased, freight and inspection costs would be $0.35 per unit, and receiving costs totaling $1,280 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 (Decrease) Make CISCO Buy CISCO Direct material $ 36880 $ 0 $ 36881 Direct labor 35840 0 35840 Indirect labor 3840 0 3841 Utilities 3280 0 3281 2920 920 2001 Depreciation Property taxes 890 410 481 Insurance Purchase price Freight and inspection Receiving costs Total annual cost $ $ $ (b) Based on your analysis, what decision should management make? The company should make CISCO