If you could show how to solve this question on excel that would be great. But if you just know how to solve it on paper that's fine too.

A 10 foot piece of flat steel 1/4 inch by 1 inch will be machined into components for a sub-assembly. The price of steel is $20.00 per pound, and the steel's density 493lb/ft3. Each component will be 12 inches long. Each cut will result in 1/4 ' loss of scrap material (this 1/4 " is not) salvageable). 15% of the steel will be lost in the machining of the 12" piece, and can scrapped. Scrap steel can be sold for $2.50 per pound. Assume 5% of the components will fail the tolerance test, and must be scrapped as well. Calculate the material cost of 1 component