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5 Relevant information for Special Decisions - Excel - 5 FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In X 2 Calibri - 11 Paste BIU Cells E. A A % A. Alignment Number Conditional Format as Cell Formatting Table Sty Styles fx Clipboard Font K2 V 1 L B D E F 0 H 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 information has been gathered relating to the cost of producing the component internally: 4 3 Unit-level Materials S 4.00 6 Unit-level Labor 6.00 7 Unit-level Overhead 2.00 8 Product-level Costs 5.00 9 Allocated facility-level cost 8.00 10 Total cost s 25.00 11 12 Supplier price $ 21.00 13 14 Units used per year 12.000 is 16 Product-level costs 17 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 5 Relevant information for Special Decisions - Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign in X Calibri - 11 | % M Paste BIU- Cells Editing Alignment Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Font K2 1 > fo