Prepare a make or buy analysis. ? - X Saf: FILE HOME INSERT Prepare a make or buy analysis - Excel FORMULAS DATA REVIEW PAGE LAYOUT VIEW Sign In B I U- - A Alignment Number Cells Editing Paste Clipboard Conditional Format as Cell Formatting Table Styles Styles Font A1 x fx Alanco, Inc. manufactures a variety of products and is currently maunfacturing all A B C D F H 1 Alanco, Incl 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: $ 4.00 6.00 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable* Fixed manufacturing overhead, common but allocated Total cost 2.00 5.00 8.00 25.00 12 Supplier price 21.00 13 Units used per year 12,000 fac Alanco, Inc. manufactures a variety of products and is currently maunfacturing all 13 14 Units used per year 12,000 15 17 16 *Fixed manufacturing overhead, traceable is composed of two items: Depreciation of equipment (no resale value) 30% 18 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. Per Unit Differential Cost Make Buy 12,000 units Make Buy 27 28 Cost of purchasing Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, common Total costs 30 33 34 Based on this analysis, write an if statement to determine if Alanco should make or buy the component. 35 36 Alanco should the component 37 38 39 40 ... Sheet1 ... + READY 0 0 -- + 100% Attempt(s) Hint