>> Prepare a make vs. buy incremental analysis for each possible course of action in an Excel worksheet.

>> You are a financial manager for Zoom Corp., which manufactures bicycles.In the most recentfiscal year, Zoom manufactured and sold 20,000 bicycles.Wheels, seats, and brake calipers are three components of the bicycles currently manufactured by Zoom.Three different vendors have proposed to provide thosecomponents to Zoom, and quoted prices (including shipping) for their delivery.Your task is to determine which, if any, of these proposals should be accepted.

>> In a Word document, prepare a memo stating which of the proposals you suggest accepting, as well as the basis for your conclusions.Also identify any nonfinancial factors you should consider before accepting any of the outsourcing proposals.

Below is cost data for Zoom's production of wheels , seats , and calipers . Outside suppliers have offered to provide wheels for $6 .97 , seats for $7 . 82 , and calipers for $ 2. 57 per piece . Both wheels and seats are branded with the Zoom logo , and that logo will need to be added at the Zoom factory at a cost of $0. 50 each for any of these components that are outsourced . For all three components , 75% of the fixed costs are avoidable , and will be eliminated if the component's production is outsourced . In addition , seats and calipers are both produced out of the same small factory space . If both seats and calipers were outsourced , Zoom could lease* the space out and increase net income by $6 ,000 per year , while eliminating all fixed costs for the two components . Wheels Seats Calipers Cost category Direct materials $141 , 000 $54, 500 591, 000 Direct labor 94 , 000 71 , 500 41 , 000 Variable overhead 21 , 000 14 , 000 16 , 000 Fixed overhead 59, 800 40 , 200 31, 400 Total cost $315 , 800 $ 180 , 200 $179 , 400 Units produced 40 , 000 20, 000 80, 000 Cost per unit $7. 90 $9. 01 $2. 24 Hints : Prepare incremental analyses for each component separately . Make wheels vs. buy wheels , etc . Since there are additional implications to outsourcing both seats and calipers , do a make vs . buy analysis assuming* both are outsourced . A correct solution , then , will likely have at least four incremental analyses . You may use the second tab of this workbook to prepare your solutions , or create a new file . Since you will be attaching this file to the Canvas assignment page , there are no file naming conventions you need to observe*