The management of Shatner Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy of the company's finished product. from outside supplier. The part, called CISCO, is a component The following information was collected from the accounting records and production data for the year ending December 31, 2014 18,000 units of CISCO were produced in the Machining Department 2. Variable manufacturing costs aplicable to the production of each CISCO unit were: direct materials $5.37. Cirect labor 4.13, orector 10.43, ties $0.45 3. Foxed manufacturing costs aplicable to the production of CISCO were Cost Item Depreciation Property awes Irwurance Direct $2,050 500 Allocated $880 430 940 $3,490 S60 $1,870 All variable manufacturing and directed costs will be eliminated if CISCO is purchased. Allocated costs will have to be absorbed by other production departments 4. The lowest quotation for 15,000 CISCO units from a supplier is $83,412 5. If CISCO units are purchased, freight and inspection costs would be $0.37 per unit, and receiving costs totaling $1,270 per year would be incurred by the Machining Department Prepare an incremental analysis for CISCO. (Enter negative amounts using either a negative sin preceding the number 45 or parentheses e... (45).) Net Income Increase (Decrease) Make CISCO Buy CISCO Drect material Decator Indirect labor Depreciation Property taxes Property taxes Insurance Purchase price Freight and inspection Receiving costs Total annual cost VIDEO SIMILAR PROBLEM Based on your analysis, what decision should management make? The company should continue to cisco Would the decision be different if Shatner Company has the opportunity to produce $5,390 of net income with the facilities currently being used to manufacture CISCO? Click if you would like to Show Work for this questions Open Show Work LINK TO TEXT VIDEO: STHTUAR