Alonco, 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. From the Excel Simulation below, if in a blank cell, "c4" was entered, the formula would output the result from cell C4, or 27,000,000 in this example, 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). From the Excel Simulation below, if in a blank cell =C14+C15" was entered, the formula would add the values from those cells and output the result, or 2,900,000 in this example. If using the other math symbols the result would output an appropriate answer for its function IF function: Allows you to test a condition and retum a specific value is the result is true and different value if the result is false. The syntax of the IF function is "IF(test_condition value_Il_true,value_ Il 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. I true and value_lt_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_i_true, or value_il_molso 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. From the Excel Simulation below. If in a blank cell "=IF(C8>1000000,"Net income is goodNet income is bad") was entered, the formula would output the result of the value / true since the test_condition would be result as true, or in this case the text "Net income is good". Excel processes the IF function by separating it out into separate parts. First the test condition - Excel thinks, find cel C8 and determine if the value is greater than 1,000,000. Once Excel determines if the result of that test condition is TRUE OR FALSE, it will return the value. Il true or value_il_false Absolute Reference: Allows you to maintain the original cell reference when a formula is copled to another cell. The cell reference is "locked" by putting a dollar sign ($) before the column and row references. By default a cell reference is relative, so when you copy a formula to another cell the values update based on a relative reference. For example, if you copy the formula 88-89" from cell Ci to cell C2, the formula in cell C2 will relatively update to be "-B9-B10" since the copled formula moved down one cell, the formula celi references also moved down one cell Conversely, by adding the absolute cell reference "locks" to the equation, the formula will not change when copied to any other cell. For example, "=$B$8+$B$9" written in cell C1is copied to cell C2, the formula in cell C2 will remain Chapter 13 Excel Sim Make or Buy Analysis Seved -- 1 111 Sints B H eBook . Print References Prepare a make or buy analysis. Excel 70 5 X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri -A % Paste BIU- A Alignment Number Conditional Fomatas Cell Cells Editing Formatting Table Styles Opboard Font Styles Alanco, Ine manufactures a variety of products and is currently maunfacturing all A c D E F 1 Alanco, Ing. 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: 5 Direct materials $ 4.00 6 Direct labor 6.00 7 2.00 Variable manufacturing overhead Fixed manufacturing overhead, traceable 8.00 Fixed manufacturing overhead, common but allocated 10 Total cost 25.00 11 $ 21.00 12 Supplier price 13 12.000 14 Units used per year 15 16 Bivat minuacha tashlanmal 4 8 5.00 9 pter 13 Excel Sim Make or Buy Analysis Saved A B c D 15 E F G 1 . 17 16 "Fixed manufacturing overhead, traceable is composed of two items Depreciation of equipment (no resale value) 3096 18 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, 19 22 Ook int ences 23 Per Unit Differential Cost 12.000 units 24 Make Buy Make Buy 25 26 Cost of purchasing 27 Direct materials 28 Direct labor 29 Variable manufacturing overhead 30 Fixed manufacturing overhead, traceable 31 Fixed manufacturing overhead, common 32 Total costs 33 34 Based on this analysis, write an if statement to determine if Alanco should make or buy the component. 35 Alanco should the component 37 Sheet1 36 + 4 Sred B D 19 E F G H 1 20 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. 22 21 Buy 23 Per Unit Differential Cost 12.000 units 24 Make Make Buy 25 26 Cost of purchasing 27 Direct materials 28 Direct labor 29 Variable manufacturing overhead 30 Fixed manufacturing overhead, traceable 31 Fixed manufacturing overhead, common 32 Total costs 33 34 Based on this analysis, write an if statement to determine if Alanco should make or buy the component. 35 36 Alanco should the component 37 38 39 40 . Sheet1