1.

Prepare a make or buy analysis. E (7 ' C, ' '5 ' : Preparea make or buy analysis - Excel ? E [5' X HOME INSERT PAGE LAYOUT FORM ULAS DATA REVIEW VIEW Sign In\" IT: _ Calibri v '11 v A' A' E % E DJ E} El f\"; E]; v 0 Paste \\' B I g v _ v :\"3 v A v Alignment Number Cond'tional Format as Cell Cells Editing ' V V Formatting' Table' Styles' Y ' Clipboard r; Font 5 Styles A A1 v j; Alanco, Inc. manufactures a variety of products and is currently ma unfacturing a\" v A B c D E F G H I i 1 lAIanco, Incii manufactures a variety of products and is currently maunfacturing all of its own component parts. 2 An outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following 3 information has been gathered relating to the cost of producing the component internally: 4 5 Direct materials 5 4.00 6 Direct labor 6.00 7 Variable manufacturing overhead 2.00 3 Fixed manufacturing overhead, traceable" 5.00 9 Fixed manufacturing overhead, common but allocated 8-00 10 Total cost A 11 12 Supplier price 5 21.00 13 7 14 Units used per year 12,000 15 16 *Fixed manufacturing overhead, traceable is composed of two items: 17 Depreciation of equipment (no resale value} 30% 18 Supervisor salary 70% 19 20 1. Assuming the company has no alternative use for the facilities now being used to produce the 21 component, complete the following analysis to determine if the outside supplier's offer should be accepted. 22 '1'") 19 20 1. Assuming the company has no alternative use for the facilities now being used to produce the 21 component, complete the following analysis to determine if the outside supplier's offer should be accepted. 22 23 Per Unit Differential Cost 12,000 units 24 Make Buy Make Buy 25 35 Cost of purchasing 37 Direct materials 28 Direct labor 29 Variable manufacturing overhead 30 Fixed manufacturing overhead, traceable 31 Fixed manufacturing overhead, common 32 Total costs 33 34 Based on this analysis, write an if statement to determine if Alanco should make or buy the component. 35 35 Alanco should the component 37 38 Varto Company has 13,000 units of its product in inventory that it produced last year at a cost of $153,000. This year's model is better than last year's, and the 13,000 units cannot be sold at last year's normal selling price of $40 each. Varto has two alternatives for these units: (1) They can be sold as is to a wholesaler for $156,000 or (2) they can be processed further at an additional cost of $189,400 and then sold for $338,000. (a) Prepare a sell as is or process fLTrther analysis of income effects. (b) Should Varto sell the products as is or process further and then sell them? Revenue Costs Income $ 0 $ 0 WWW : Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 4.2 pounds of the material, Ike uses 2.1 pounds of the material, and Bix uses 6 pounds ofthe material. Selling price per unit and variable costs per unit of each product follow. Kin Ike Bix Selling price per' unit 5 170.26 5 187.79 $ 285.69 Variable costs per- unit 166.66 87.66 142.66 (3) Compute contribution margin per pound of material for each product. (b) If demand is limited, list the three products in the order in which management should produce and meet demand. Contribution margin per pound Order in which management should produce and meet demand: :Zd Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $302,500 of its fixed costs are avoidable. Segment Income (Loss) Sales $ 989,866 Variable costs 767,666 Contribution margin 282,866 Fixed costs 343,666 Income (loss) $ (66,266) (3) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income increase or decrease from eliminating this segment. Income (loss) Required B >