Prepare a make or buy analysis. ? 5 X HOME INSERT Sign In FILE X i 11 Calibri BIU Prepare a make or buy analysis - Excel PAGE FORMULAS DATA REVIEW VIEW A % - A - AlignmentumbefonditioFormat Cell Cells Formattiras Styles Styles Paste Clipboard D12 Font A A B H I D E F 1 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 3 information has been gathered relating to the cost of producing the component internally: 4 $ 4.00 6.00 2.00 5.00 8.00 25.00 8 9 $ 5 Direct materials 6 Direct labor 7 Variable manufacturing overhead Fixed manufacturing overhead, traceable* Fixed manufacturing overhead, common but allocated 10 Total cost 11 12 Supplier price $ 13 14 Units used per year 15 16 *Fixed manufacturing overhead, traceable is composed of two items: Depreciation of equipment (no resale value) Supervisor salary 21.00 12,000 17 30% 70% 18 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 Attempt(s) 100% Hint