Function: IF, SUM; Formula: Multiply, Subtract; Cell Referencing Using Excel to Assess a Make or Buy Decision Student Work Area PROBLEM Required: Provide input into cells shaded in yellow in this template. Use mathematical Manson Industries makes an assembly part for its finished formulas with cell references to the Problem area or work area as indicated. Type the product. A supplier has offered to produce the assembly part. number zero in any field in the Make or Buy columns for which there is no cost. Information concerning the assembly part follows. Unit cost to make product Prepare an analysis using Excel's IF function showing the total cost saving, if any, Manson Variable 5.00 will realize by buying the part. Fixed 3.00 Offer by supplier to produce Net Income Per unit 6.00 Increase Number of units 10.000 Make Buy (Decrease) Variable manufacturing costs 50.000 If the offer is accepted, Manson will save all variable costs but no fixed costs. Fixed manufacturing costs Purchase price Total Decision to be made

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