VIEW Be careful-Files from the Internet can contain viruses. Unless you need to e A1 X fx Function: IF, SUM; Formula: Multiply, Subtract; Ce E B C D 1 Function: IF, SUM; Formula: Multiply, Subtract; Cell Referencing 2 3 Using Excel to Assess a Make or Buy Decision 4 PROBLEM 5 Manson Industries makes an assembly part for its finished 6 product. A supplier has offered to produce the assembly part. 7 Information concerning the assembly part follows. 8 9 Unit cost to make product 10 Variable 5.00 11 Fixed 3.00 12 Offer by supplier to produce 13 Per unit 6.00 14 Number of units 10,000 15 16 If the offer is accepted, Manson will save all variable costs but no 17 fixed costs. 18 19 $ 20 21 22 edit, it's safer to stay in Protected View. Enable Editing tell Referencing F G H M Student Work Area Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem area or work area as indicated. Type the number zero in any field in the Make or Buy columns for which there is no cost. Prepare an analysis using Excel's IF function showing the total cost saving, if any, Manson will realize by buying the part. Net Income Increase (Decrease) Make Buy Variable manufacturing costs Fixed manufacturing costs Purchase price Total Decision to be made 4- .1 Function: IF, SUM; Formula MultiplySubtract, Celi Referencing Student Work Area Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with coll references to the Problem area or work area as indicated Type the number zero in any field in the Make or Buy columns for which there is no cost Function: IF, SUM; Formula: Multiply. Subtract: Cell Referencing Using Excel to Assess a Make or Buy Decision PROBLEM Manson Industries makes an assembly part for its finished 6 product. A supplier has offered to produce the assembly part 7 Information concerning the assembly part follows 3 Unit cost to make product 70 Variable $ 5.00 13 Fixed 3.00 Offer by supplier to produce Per unit 6.00 14 Number of units 10.000 15 16 I the offer is accepted, Manson will save all variable costs but no 17 fixed costs 9 Prepare an analysis using Excel's IF function showing the total cost saving, if any, Manson will realize by buying the part 12 Net Income Increase (Decrease) Make Buy Variable manufacturing costs Foxed manufacturing costs Purchase price Total 18 19 20 21 22 23 24 Decision to be made