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Prepare a make or buy analysis - Prepare a make or buy analysis - Excel FORMULAS DATA REVIEW FILE HOME INSERT PAGE LAYOUT VIEW Sign In 11 Paste Font Canon AA BIU Alignment Number Conditional Format Cell Cell Formatting Table Styles Clipboard Styles A1 Alanco, inc manufactures a variety of products and is currently maunfacturing all C D H Alanco, Ind 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: B 4 5 Direct materials $ 4.00 6 Direct labor 6.00 7 Variable manufacturing overhead 2.00 8 Fixed manufacturing overhead, traceable 5.00 9 Fixed manufacturing overhead, common but allocated 3.00 10 Total cost 25.99 11 12 Supplier price $ 21.00 13 14 Units used per year 12,000 15 16 "Fixed manufacturing overhead, traceable is composed of two items 17 Depreciation of equipment (no resale value 3096 18 Supervisor salary 7096 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 23 Per Unit Differential Cost 12.000 units Sheet1 READY 100 Prepare a make or buy analysis Excel FORMULAS DATA REVIEW FILE HOME INSERT PAGE LAYOUT VIEW Sign Canice AA BIU Cells Alignment Number Conditional Formats Cell Formatting Table Styles Clipboard Foot Alanco, Inc. manufactures a variety of products and is currently maunfacturing all D F G H 309 709 16 Fixed manufacturing overhead, traceable is composed of two items 17 Depreciation of equipment (no resale value) Supervisor salary 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. 18 19 22 23 Per Unit Differential Cost Make Buy 12,000 units Make Buy 24 25 26 cost of purchasing 27 Direct materials 28 Direct labor 29 Variable manufacturing overhead 30 Fixed manufacturing overhead, traceable : Fixed manufacturing overhead, common 32 Total costs 33 24 Based on this analysis, write an if statement to determine if Alanco should make or buy the component. Alanco should the component 35 36 37 38 . Sheet1 READY LI 100%
