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H . . HOME FILE INSERT PAGE LAYOUT Prepare a make or buy analysis - Excel FORMULAS DATA REVIEW ? - Cabe 6 VIEW Paste

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H . . HOME FILE INSERT PAGE LAYOUT Prepare a make or buy analysis - Excel FORMULAS DATA REVIEW ? - Cabe 6 VIEW Paste Sign In BIU R A Alignment Number Clipboard Font Conditional Format as Cell Formatting Table Styles Cells Editing 036 Styles 14 Units used per year 12,000 16 "Fixed manufacturing overhead, traceable is composed of two items: 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. 30% 70% Per Unit Differential Cost Make Buy 12,000 units Make Buy Cost of purchasing Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, common Total costs 6.00 2.00 34 Based on this analysis, write an if statement to determine if Alanco should make or buy the component. 15.50 Sheet READY A ) 8/10 HOME INSERT PAGE LAYOUT Prepare a make or buy analysis - Excel FORMULAS DATA REVIEW Calibri ? - A VIEW * BIU-E- Sign In board A Alignment Number Cond Formatting Font Table Styles Cells Editing Styles 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 EWNO 2.00 5.00 Supplier price 8.00 25.00 Units used per year 21.00 "Fixed manufacturing overhead, traceable is composed of two items: Depreciation of equipment (no resale value) Supervisor salary 12,000 30% 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. 70% Sheet Per Unit Differential Cost READY Attempts 8/10 12,000 units

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