Alanco, Inc. manufactures a variety of products and is currently maunfacturing all of its own component parts. An outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following information has been gathered relating to the cost of producing the component internally: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable* Fixed manufacturing overhead, common but allocated Total cost $4.00 6.00 2.00 5.00 8.00 $25.00 $21.00 12,000 Supplier price Units used per year *The fixed manufacturing overhead, traceable Depreciation of equipment (no resale value) Supervisor salary Required: 30% 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. (Use cells A6 to B19 from the given information to complete this question. Blank or zero value answers should be entered as =0.) Cost of purchasing Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, common Total costs Per Unit Differential Cost 12,000 units Make Buy Make Buy