Alanco, Inc. manufactures a variety of products and is currently manufacturing all of its own component parts. An outside supplier has offered to sell one of those components to Alanco. The Controller has asked you to help evaluate this offer to determine if the company should make or buy the component. Use the information included in the Excel Simulation and the Excel functions described below to complete the task.

Cell Reference: Allows you to refer to data from another cell in the worksheet. In the Excel Simulation below, if =G5 is entered in a blank cell, the formula outputs the result from cell G5, which is 4.00 in this example.

Absolute Reference: Allows you to maintain the original cell reference when a formula is copied to another cell. The cell reference is locked by putting a dollar sign ($) before the column and row references. By default a cell reference is relative, so when you copy a formula to another cell, the values update based on a relative reference. For example, if you copy the formula =B8+B9 from cell C1 to cell C2, the formula in cell C2 relatively updates to be =B9+B10. Since the copied formula moved down one cell, the formula cell references also move down one cell. Conversely, by adding the absolute cell reference locks to the equation, the formula will not change when copied to any other cell. For example, if =$B$8+$B$9 in cell C1 is copied to cell C2, the formula in cell C2 remains =$B$8+$B$9. You can also use a mixed cell reference by only locking the column or row ($B8 or B$8), which locks that specific column or row and the other reference becomes a relative reference and moves with the formula as it's copied to another cell. For example, if you copy the formula =B$8+B9 from cell C1 to cell C2, the formula in cell C2 updates to be =B$8+B10. Since the copied formula moved down one cell, the formula cell relative references also move down one cell, but the absolute locked reference remains the same. For this project, when using Absolute Cell Referencing, you can also use the auto-fill option; however, for proper grading you should only auto-fill one cell at a time and not an entire range.

Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: + (plus sign to add), - (minus sign to subtract), * (asterisk sign to multiply), and / (forward slash to divide). In the Excel Simulation below, if =B5+B6 is entered in a blank cell, the formula adds the values from those cells and outputs the result, which is 10.00 in this example. If using the other math symbols, the result is an appropriate answer for the function.

SUM function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges to utilize this function. In the Excel Simulation below, if in a blank cell =SUM(B5,B6,B7) was entered, the formula would output the result of adding those three separate cells, or 12.00 in this example. Similarly, if in a blank cell =SUM(B5:B7) was entered, the formula would output the same result of adding those cells, except they are expressed as a range in the formula, and the result would be 12.00 in this example.

IF function: Allows you to test a condition and return a specific value if the result is true and a different value if the result is false. The syntax of the IF function is =IF(test_condition,value_if_true,value_if_false) and specific considerations need to be made when using this function. The test_condition argument is an evaluation of the status of a cell, such as if the value of a cell is greater than, less than, or equal to another number or cell. The value_if_true and value_if_false arguments will return any specific result for each option, such as another cell reference, a value, or text. Throughout the entire equation, if text is being used in the test_condition, value_if_true, or value_if_false arguments, then the text itself should be entered in quotations so that Excel will recognize the text as a string of text instead of another function. In the Excel Simulation below, if =IF(F14>10000,Production is good,Production is low) is entered in a blank cell, the formula outputs the result of the value_if_true since the test_condition is true, so in this case the result is the text Production is good. Excel processes the IF function by separating it out into parts. First is the test_conditionExcel thinks, find cell F14 and determine if the value is greater than 10,000. Once Excel determines if the result of that test_condition is TRUE or FALSE, it returns the value_if_true or value_if_false.

With formulas please

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\begin{tabular}{|c|c|c|c|c|c|c|c|} \hline 16 & A & B & C & CE & Clx \\ \hline 1 & A & Alanco, Inc. manufactures a variety of products and is currently maunfacturing all of its own component parts. \\ \hline 2 & An outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following \\ \hline \end{tabular} 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: \begin{tabular}{|l|l} \hline 4 & \\ \hline 5 & Unit-level Materials \\ \hline 6 & Unit-level Labor \\ \hline 7 & Unit-level Overhead \\ \hline 8 & Product-level Costs* \\ \hline 9 & Allocated facility-leve \\ 10 & Total cost \\ 11 & \\ 12 & Supplier price \\ 13 & \\ 14 & Units used per year \\ \hline 15 & \end{tabular} * Product-level costs 70% of these costs can be avoided by purchasing the component Supervisor salary 70% 1. Assuming the company has no alternative use for the facilities now being used to produce the component, complete the following analysis to determine if the outside supplier's offer should be accepted. Cost of purchasing Unit-level Materials Unit-level Labor Unit-level Overhead Product-level Cost Allocated facility-level Costs Total costs Based on this analysis, write an if statement to determine if Alanco should make or buy the component. Alanco should the component