The management of Whithorue Manufacturing Company is trying to decide whether to continue manufacturing apart...
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The management of Whithorue Manufacturing Company is trying to decide whether to continue manufacturing apart or to buy it from an outside supptiter. The part, called WisCO is a component of the companv strished presturt. The following information was collected from the accountiry records and production dota for the year encing December 34,2022 . 1. The machining department produced 7,600 units of Wisco during the year. indirect laboor $0.42, and utilities 50.32 . 3. Foend entanufacturins costs applicable to the production of wisco were an follows: The company will eliminate all variable manufacturing and direct foxed costs if it purdiases wisco. Allocated costs will have to be absorbed by other production departments. So if WiSCO is purchased, the fixed manufacturing costs allocated to WISCO with the to bestiso bed by other production departiments. 4. The lowest quotation for 7,600 Wisco units from a supplier is $80,180. 5. If WisCO inits are purchused, freight and inspection costs would be 50.42 per unit and the muchining department would ancur receiving costs totalling $1290 per yes. when roivine thit probiem! Number of units:7,600 Make Wisco Bury Wisco Netincorise Increuse (Decrease) Prepare an incremental anslysis for WISCO. Of an amount reduces the net income then enter with a negative san precedilng the number, when solving this problem. Hased on your analvis, what decisionshould managenent muke? Would the decision be different if Wildhorse had the opportunity to produce $3.200 of net income with the facilities currently. es: 15,000 or purenthels es (15,000) ). Netinconewill be by
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