x] 5- Prepare a make-or-buy analysis - Excel ? 6 X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri - 11 = % Paste BIU Alignment Number Conditional Format as Cell Formatting Table Styles Cells Editing Clipboard Font Styles A C25 : X A B G H I D E F 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 6 5 $ 4.00 Direct materials Direct labor 6.00 7 Variable manufacturing overhead 2.00 8 Fixed manufacturing overhead, direct* 5.00 9 Fixed manufacturing overhead, common but allocated 8.00 10 Total cost $ 25.00 11 12 Supplier price $ 21.00 13 14 Units used per year 12,000 15 16 *The fixed manufacturing overhead, direct 17 Depreciation of equipment (no resale value) 30% 18 Supervisor salary 70% 19 20 1. Assuming the company has no alternative use for the facilities now being used to produce the 21 component, complete the following analysis to determine if the outside supplier's offer should be accepted. 22 A B D E F 1 1. Assuming the company has no alternative use for the facilities now being used to produce the 1 component, complete the following analysis to determine if the outside supplier's offer should be accepted. 2 3 Per Unit Differential Cost Make Buy Total for 12,000 units Make Buy 4 5 6 Cost of purchasing 7 Direct materials 8 Direct labor 9 Variable manufacturing overhead D Fixed manufacturing overhead, traceable 1 Fixed manufacturing overhead, common 2 Total costs 3 4 Based on this analysis, write an if statement to determine if Alanco should make or buy the component. 5 6 Alanco should the component 7 8