The mnagement of Tanter Manufacturing Company is trying to decide whether to manufacture a partor buy it from an outside supplier. The part called, TISN, 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, 2019.

i./ 8,000 units of TISN were produced by the Machining Department.

ii./ Variable manufacturing costs applicable to the produycion of each TISN unit were: direct material $4.80, direct labour $4.30, indirect labour $0,43, utilities $0.40.

iii./ Fixed manufacturing cots applicable to the production of TISN were:

Costitem	Direct	Allocated
Depreciation	$2,100	$900
Property Taxes	500	200
Insurance	900	600
Total	$3,500	$1,700

All variable manufacturing and direct fixed costs will be eliminated if TISN is purchased. Allocated cos will have to be absobed by other production departments.

iv./ The lowest quoation for 8,000 TISN units from a supplier is $80,000

v./ If TISN units are purchased, freight and inspection costs would be $0.35 per unit, and receiving costs totalling $1,300 per year would be incurred by the machining Department.

Required

a. Prepare an incremental analysis fr TISN

b. Based on your analysis, what decision would be management make

c./ would the decision be different if Tanter Company has the opportunity to produce $3,000 of net income with the facilities currently being used to manufacture TISN

d. What non-financial factors should the management consider in making its decision?