All answers in yellow blanks must be entered in formula form (ex: d2+d3). No num

Question

All answers in yellow blanks must be entered in formula form (ex: d2+d3). No numbers allowed

Prepare a make or buy analysis:

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 offerthe following 3 (information has been gathered relating to the cost of producing the component internally: 5 Direct materials 6 Direct labor 7 Variable manufacturing overhead 8 Fixed manufacturing overhead, traceable 9 Fixed manufacturing overhead, common but allocated 10 cost Total $ $ 4.00 6.00 2.00 | 5.00 8.00 25.00 11 12 Supplier price $ 21.00 13 14 Units used per year 12000 15 16 *Fixed manufacturing overhead, traceable is composed of two items: 17 Depreciation of equipment (no resale value) 30% 18 Supervisor salary 70% I 19 20 1. Assuming the company has no alternative use for the facilities now being used to produce the 21 componentcomplete the following analysis to determine if the outside supplier's offer should be accepted. 22

Explanation / Answer

All answers in yellow blanks must be entered in formula form (ex: d2+d3). No num

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