create a Memo Analysis below:

evaluate a cost analysis and make a decision based on cost comparatives of two or more alternatives, the manager consider relevant and incremental costs only. Thank you.

Part B: Written Component

Assume you are the plant accountant for your company. During the monthly meeting, you decided to share your knowledge of the capital budgeting methods discussed in Part A. How do these methods compare to each other?

Prepare a make or buy analysis. Prepare a make or buy analysis - Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW -A A % Calibri -111 Alignment Number Conditional Format as Cell Formatting Table Styles Paste BIU- Cells Editing Clipboard Font Styles 16 fe D E F G 1 Alanco, Inc. manufactures a variety of products and is currently maunfacturing all of its own component parts. 2 An outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following 3 information has been gathered relating to the cost of producing the component internally: 4 Direct materials $ 4.00 6 Direct labor 6.00 7 Variable manufacturing overhead 2.00 8 Fixed manufacturing overhead, traceable* 5.00 9 Fixed manufacturing overhead, common but allocated 10 Total cost 8.00 25.00 11 12 Supplier price 2$ 21.00 13 14 Units used per year 12,000 15 16 *Fixed manufacturing overhead, traceable is composed of two items: 17 Depreciation of equipment (no resale value) Supervisor salary 30% 18 70% 19 20 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. 21 22 %24 in