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what is the required sales in dollars for the company to meet its target?

Exercise 2: The management of Shather Manufacturing Compuny is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The pan, ealled CISCO, is a component of the company's finished product. The following informatinn was collected from the accounting records and production data for the year ending December 31, 2020. 1. 8,000 units of CISCO were produced in the Machining Department. 2. Variable manufacturing conts applicable to the production of each CISCO unit were: direct materials 54.80 , direct labor 54.30 , indirect labor So 43 , witlities 50,40 . 3. Fixed manufacturing costs applicable to the production of CISCO were: All variable manufacturing and direct fixed costs will be eliminated if CISCO is purchased. Allocated costs will not be eliminated if CISCO is purchased. So if CISCO is purchased, the fixed manufacturing costs allocated to CISCO will have to be absorbed by other production departments. 4. The lowestquotation for 8,000 CISCO units from a supplier is $80,000. 5. If CISCO units are purchased, freight and inspection conts would be \$0.35. per unit, and receiving costs totaling $1,300 per year would be incurred by the Machining Department

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