A1 B D E Alanco, Inc. manufactures a variety of products and is currently maunfacturing all F G H 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 6 Unit-level Labor 7 Unit-level Overhead 8 Product-level Costs* 9 Allocated facility-level cost 10 Total cost 11 12 Supplier price 13 14 Units used per year 21.00 12,000 $ 4.00 6.00 2.00 5.00 8.00 $ 25.00 15 16 * Product-level costs 17 18 19 70% of these costs can be avoided by purchasing the component Supervisor salary 70% 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 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 Sheet1 Per Unit Differential Cost 12,000 units Make Buy Make Buy I J K L