Preparing a Make or Buy Analysis using Excel's SUM, IF and Basic Math Functions Alanco, Inc, manufactures a vanety of products and is currently manufacturing all of its own component parts. An outside supplier has offered to sell one of those components to Alanco. The Controller has asked you to help evaluate this offer to determine if the company should make or buy the component. Use the information included in the Excel Simulation and the Excel functions described below to complete the task. - Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel 5 imutation beiow, if in a blank cell, "c4" was entered, the formula would output the result from cell C4, or 27,000,000 in this example - Bosic Moth functions: Allows you to use the basic math symbols to perform mathematical functions You can use the folicwng keys: + iplus sign to add), - (minus sign to subtract), "(asterisk sign to multiply), and / (forward siash to divide) From the Excel Simulation below, if in a blank cell "=Cl4+C15" was entered, the formula would add the values from those cells and output the result, or 2,900,000 in this example if using the other math symbols the result would output an appropriate answer for its function - IF function: Allows you to test a condition and return a specific value is the result is true and different value if the resuit is false. The syntax The test condition argument is an evaluation of the status of a cell, such as if the value of a cell is greater than, iess than, or equal to another the text itseif should be entered in quotations so that Excel wil recognre the text as a "string of text" instead of another function. From the Excel Simulation beiow, if in a biank cell "-IFiC8-1000000, Net income is good". "Net income is bad') was entered, the formula woukd output the resuit of the value. If, true since the test_condition would be resuit as true, of in this case the text "Net income is good: Excel processef the If function by separating it out into separate parts. First the tesLconconon- Excel thinks, find cen C8 and defermine if bie vatie as value it farse - Absolute Reference: Allows you to maintain the original cell reference when a formula is copled to another ceil The cell reference is "locked" by putting a doliar sign (\$) before the column and row references By default a cell reference is iclative, so when you copy a formula to another cell the values update based on a relative reference. For example. If you copy the formula "- B8+89" from cell Cl to cell C2, the formula in cell C2 will relatively update to be " B9+Bi0* since the copred formula moved down one cel, the formula cell reterences. also moved down one cell. Conversely, by adding the absolute celi reference "locks" to the equation, the formula will not change when copled to any other cell. For example, "-\$8\$8+\$B59" wrmen in cels clis copled to cel C2, the formula in cell C2 will remain The test function is "=IF(test_condition, value it true, valie_, it false)" and specific considerations need to be made when using this function The test condition argument is an evaluation of the status of a cell, such as if the value of a celi is greater than, less than, of equal to another number or cell. The value, it true and value it false arguments will return any specific result for each option, such as another cell reference a value, or text. Throughout the entire equation, if text is being used in the test_condition, vatue if true, or vatue if false arguments then the text itself should be entered in quotations so that Excel will recognize the text as a "string of lext" instead of another function. From the Excel Simulation below, if in a blank cell "=IF(C8>1000000," Net income is goc0". Net income is bad") was entered, the formula would output the resuit of the value if true since the test condition would be resuit as true, of in this case the text "Net income is good". Excel processes the IF function by separating it out into separate parts. First the testcondition - Excel thinks, find cell CB and determine if the value is greater than t,000,000. Once Excel determines if the result of that tesLcondition is TRUE or FALSE, it will return the valie. it irue or value it false - Absolute Reference: Allows you to maintain the onginal cell reference when a formula is copled to another cell the cell reference is " locked" by putting a dollar sign (\$) before the column and row references. By default a cell reference is relative, so when you copy a formula to another cell the values update based on a relative reference. For example, if you copy the formula "68+89+ from cell Ci to cell C2, the formula in cell C2 will relatively update to be =B9+B10 since the copied formula moved down one cell, the formula cell references also moved down one cell. Conversely, by adding the absolute cell reference "locks" to the equation, the formula will not change when copied to any other cell. For example, "=\$B\$8+\$BS9" written in cell Cl is copled to cell C2, the formula in cell C2 will remain "-\$BS8+\$8S9" You can also use a mixed cell reference by only -locking" the column or row onty ($88 or B\$8) which locks that specific column or row and the other reference becomes a relative reference and "moves" with the formula as its copled to another cell- For formula moved down one cell, the formula cell relative references also moved down one cell, but the absolute "locked" reference remained the same. For this project, when using Absolute Cell Referencing. you can also use the auto-fill option, however, for proper grading you should only auto-fill one cell at a time and not an entre range . 2 An outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following 21 component, complete the following analysis to determine if the outside supplier's offer should ve accepted. 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