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2 Prepare a make or buy analysis - Excel FORMULAS DATA REVIEW FILE HOME INSERT PAGE LAYOUT VIEW Sign In Calibri A Paste BIU Cells
2 Prepare a make or buy analysis - Excel FORMULAS DATA REVIEW FILE HOME INSERT PAGE LAYOUT VIEW Sign In Calibri A Paste BIU Cells Alignment Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Font A1 Alanco, Inc. manufactures a variety of products and is currently maunfacturing all 1 1 2 3 B D E F H lanco, ind manufactures a variety of products and is currently maunracturing all of its own component parts. n outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following formation has been gathered relating to the cost producing the component internally 4 S 6 7 Direct materials Direct labor /ariable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, common but allocated Total cost 4.00 6.00 2.00 5.00 8.00 25.09 9 10 11 s 12 Supplier price $ 21.00 13 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) 3095 18 7096 Supervisor salary 19 20 Assuming the company has no alternative use for the facilities now being used to produce the 21 3mponent, complete the following analysis to determine if the outside supplier's offer should be accepted. 22 Assuming the company has no alternative use for the facilities now being used to produce the imponent, complete the following analysis to determine if the outside supplier's offer should be accepted. Per Unit Differential Cost Make Buy 12,000 units Make Buy Cost of purchasing Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, common Total costs ased on this analysis, write an if statement to determine if Alanco should make or buy the component. Alanco should the component
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