Prepare a make or buy analysis. E 6) " C' ' a ' 3 Preparea make or buy analysis Excel ? E X HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In n to g; at .- El m a _. E Paste - If) v A - Alignment Number Conditional Format as Cell Ceilg Editing " V ' ' Formatting ' Table ' Styles ' ' ' Clipboard Fr Font 5- Styles A A1 v 5 '2' v\" )5: Alanco, Inc. manufactures a variety of products and is currently maunfacturing v A | B c o E F G H l A ilAlanco; Incl manufactures a variety of products and is currently maunfacturing all of its own component parts. 2 Anoutside supplier has littered $0.58.\" One of those com ponents to Ala \"99-. To evaluate this offer..the..f9||9wing 3 information has been gathered relating to the cost of producing the component internally: 4 5 Direct materials _ S 4-00 . 5 Direct labor _ _ 6.00 _ 7 Variable manufacturing overhead _ 2.00 _ 3 Fixed manufacturing overhead, traceable* _ 5.00 _ 9 Fixed manufacturing overhead, common but allocated 8.00 10 Total cost _ _ _ _ A _ ' \"H\" \"V\"'- 3% 11 12 Supplier price S 21.00 13 14 Units used per year 12,000 15 15 *Fixed manufacturing overhead, traceable is composed of two items: 1? Depreciation of equipment {no resale value) 30% 13 Supervisor salary 70% 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 " W... 6-) j ' 23 24 25 26 2? 23 29 30 31 32 33 34 35 36 3? 38 39 40 Per Unit Differential Cost 12:000 units Make _ Buy Make Buy Cost of purchasing Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, common Total costs Based on this analysis, write an if statement to determine if Alanco should make or buy the component. Alanco should the component READY _J lEl ."'| I+ 1 [ll] 'El-ii