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Alanco, Inc, manufactures a variety of products and is currently maunfacturing all of its own component parts. An outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following information has been gathered relating to the cost of producing the component internally: $ Unit-level Materials Unit-level Labor Unit-level Overhead Product-level Costs Allocated facility-level cost Total cost 4.00 6.00 2.00 5.00 8.00 25.00 A $ Supplier price $ 21.00 Units used per year 12,000 * Product-level costs 70% of these costs can be avoided by purchasing the component Supervisor salary 70% 3 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. 70% of these costs can be avoided by purchasing the component Supervisor salary 70% 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. Per Unit Differential Cost Make Buy 12,000 units Make Buy Cost of purchasing Unit-level Materials Unit-level Labor Unit-level Overhead Product-level Cost Allocated facility-level Costs Total costs - Based on this analysis, write an if statement to determine if Alanco should make or buy the component. 5 Alanco should the component

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