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The management of Shatner Manufacturing Company is trying to decide whether to c

ID: 2507972 • Letter: T

Question

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 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 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 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 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, 2014. 7,900 units of CISCO were produced in the Machining Department. Variable manufacturing costs applicable to the production of each CISCO unit were: direct materials $5.34, direct labor $4.29, indirect labor $0.49, utilities $0.40.

Explanation / Answer

Net Income

Increase

(Decrease)

42,186

33,891

3,871

3,160

2,060

500

920

(83,446)

(3,081)

(1,290)

(1,229)

Net Income

Increase

(Decrease)

42,186

33,891

3,871

3,160

2,060

500

920

(83,446)

(3,081)

(1,290)

(1,229)