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Function: JF, SUM; Formula: Multiply, Subtract; Cell Referencing Using Excel to Assess a Make or Buy Decision PROBLEM Manson Industries makes an assembly part for
Function: JF, SUM; Formula: Multiply, Subtract; Cell Referencing Using Excel to Assess a Make or Buy Decision PROBLEM Manson Industries makes an assembly part for its finished product. A supplier has offered to produce the assembly part. Information concerning the assembly part follows. Student Work Area Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem area or work area as indicated. Type the number zero in any field in the Make or Buy columns for which there is no cost. Prepare an analysis using Excel's IF function showing the total cost saving, if any, Manson will realize by buying the part S 5.00 3.00 Unit cost to make product Variable Fixed Offer by supplier to produce Per unit Number of units 6.00 10,000 Net Income Increase (Decrease) Make Buy Variable manufacturing costs If the offer is accepted, Manson will save all variable costs but no fixed costs. Fixed manufacturing costs Purchase price Total Decision to be made
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