1. Based upon the make or buy analysis you prepared, do you recommend that the company make or buy the component? Why?
2. Besides the quantitative analysis that you prepared, identify and discuss at least three qualitative factors that should be considered as part of the analysis.
3. Describe one thing that surprised you or that you will be able to apply to your personal or professional life from this assignment.

A B C D E F G H K 2 Alanco, Inc. manufactures a variety of products and is currently maunfacturing all of its own component parts. 3 An outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following information has been gathered relating to the cost of producing the 4 component internally: 5 6 Direct materials $4.00 7 Direct labor 6.00 8 Variable manufacturing overhead 2.00 9 Fixed manufacturing overhead, traceable* 5.00 10 Fixed manufacturing overhead, common but allocated 8.00 11 Total cost $25.00 12 13 Supplier price $21.00 14 15 Units used per year * 12,000 16 17 * The fixed manufacturing overhead, traceable 18 Depreciation of equipment (no resale value) 30% 19 Supervisor salary 70% 20 21 Required: 22 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.[Use cells A6 to 319 from the given information to complete this question. Blank or zero value answers should be entered as =D.] Cost of purchasing Direct materials $4.00 a $43,000 a Direct labor 6.00 a noun 6 Variable manufacturing overhead 2.00 a 24,000 a Fixed manufacturing overhead, traceable 3.50 a 42,000 a Fixed manufacturing overhead, common Total costs $15.50 a $186,000 a 2. Based on this analysis, determine if Alanco should make or buy the component. Alanco should maize athe component