17 v 1 A B D F G . 1 Alanco, Inc, 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 Unit-level Materials $ 4.00 6 Unit level Labor 6.00 7 Unit-level Overhead 2.00 Product-level Costs 5.00 Allocated facility-level cost 8.00 25.00 11 12 Supplier price 5 21.00 13 14 Units und per year 12.000 15 16 Product-level costs 12 70% of these costs can be avoided by purchasing the component 18 Supervisor salary 704 19 2011. Assumine the commany has no alternative use for the facilities now heine used to reduce the 10 Total com B D E F G H 5 6 Product-level costs 7 70% of these costs can be avoided by purchasing the component 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 23 Per Unit Differential Cost Make 12,000 units Make Buy 24 25 26 Cost of purchasing 27 Unit-level Materials 28 Unit-level Labor 29 Unit-level Overhead 30 Product-level Cost 31 Allocated facility-level Costs 32 Total costs 33 X All answers must be entered as a formula. Click OK to begin. OK