D F G A B E H J K L 1 Function: IF, SUM; Formula: Multiply, Subtract 2 3 Using Excel to Assess a Make or Buy Decision 4 5 Emil Manufacturing makes a sub-assembly part for its finished product. A supplier offers to make the parts. 6 if Emil accepts the offer, Emil will save all variable costs and some of the fixed costs. 7 8 Unit cost to make product 9 Variable $ 4.5 10 Fixed 3 11 Offer by supplier to produce 12 Per Unit 5 13 Number of Units 10,000 14 Unit savings of fixed costs if offer accepted 1 15 16 17 Provide input into cells shaded in green in this template. Use mathematical formulas with cell references to the Problem area or work area as indicated. 18 Type the number zero in any field in the Make or Buy columns for which there is no cost. Use the IF function in the Decision to be Made answer field. 19 20 Prepare an analysis showing the total cost savings, if any, that Emil will realize by buying the part. 21 22 Net Increase 23 Increase Per Unit Make Buy (Decrease) 25 Variable manufacturing costs $ 4.5 26 27 Fixed manufacturing costs 28 29 Purchase price 5 30 31 Total 32 33 Decision to be made 34 24 3