Use the Following Scenario to Answer the Following Question(s)
the

question 38

Essay

Use the following scenario to answer the following question(s)
The Blue Sunset Band is planning to record a new album. A major decision to be made is if the band can record the album on their own, or if they should hire a studio to record it with. The
fixed cost for recording at the studio is $100,000 plus the manufacturing cost per CD, which is at
$250. If they record the album in-house, the cost per CD is $350. They plan to produce 3000 copies of the album regardless of the place of recording. The band plans to record with the cheaper option. Below is the spreadsheet of the Recording Decision. $\begin{array}{|l|l|l|}\hline & \text { A } & \text { B } \\\hline & \begin{array}{l}\text { The Blue Sunset Band } \\\text { Album Recording }\end{array} & \\1 & \begin{array}{l}\text { Decision } \\\text { Den }\end{array} & \\\hline 2 & & \\\hline 3 & \text { Data } & \\\hline 4 & & \\\hline 5 & \text { Recording at Studio } & \\\hline 6 & \text { Fixed Cost } & \$ 100,000 \\\hline 7&\text { Unit CD Cost }&\$250\\\hline\\\hline 9 & \text { Recording In-house } & \\\hline 10 & \text { Unit CD Cost } & \$350 \\\hline 11 & & \\\hline 12 & \text { Production Volume } & 3000 \\\hline 13 & & \\\hline 14 & \text { Model } & \\\hline 15 & & \\\hline 16 & \begin{array}{l}\text { Total studio } \\\text { manufacturing cost }\end{array} & \$ 850,000 \\\hline 17 & \begin{array}{l}\text { Total in-house } \\\text { manufacturing cost }\end{array} & \$ 1,050,000 \\\hline 18 & & \\\hline 19 & \text { Cost Difference } & -\$ 200,000 \\\hline 20 & \text { Recording Decision } & \text { Studio } \\\hline\end{array}$
-Using the spreadsheet below, provide the steps in using Excel formulas in finding the cost of the first order for Item number 1345, and the total cost of all Item numbers 1345, using the
Match and Index functions in Excel. Column B is sorted by item number in ascending order. $\begin{array}{|l|l|l|l|l|l|}\hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\\hline 1 & \text { Purchase Orders } & & & & \\\hline 2 & & & & & \\\hline 3 & \text { Supplier } & \text { Item No. } & \text { Item Cost } & \text { Quantity } & \text { Cost per Order } \\\hline 4 & \text { Rex Technologies } & 1123 & \$ 89 & 35 & \$ 3115 \\\hline 5 & \text { Rex Technologies } & 1234 & \$ 150 & 15 & \$ 2250 \\\hline 6 & \text { Rex Technologies } & 1345 & \$ 15 & 40 & \$ 600 \\\hline 7 & \text { Rex Technologies } & 1345 & \$ 15 & 20 & \$ 300 \\\hline 8 & \text { Max's Wavetech } & 1345 & \$ 5 & 10 & \$ 50 \\\hline 9 & \text { Max's Wavetech } & 1765 & \$ 278 & 27 & \$ 6950 \\\hline 10 & \text { Max's Wavetech } & 1654 & \$ 120 & 18 & \$ 2160 \\\hline 11 & \text { Rex Technologies } & 1765 & \$ 54 & 56 & \$ 3024 \\\hline 12 & \text { Rex Technologies } & 1100 & \$ 71 & 33 & \$ 2343 \\\hline 13 & \text { Rex Technologies } & 1100 & \$ 10 & 14 & \$ 140 \\\hline 14 & \text { Rex Technologies } & 1683 & \$ 7 & 25 & \$ 175 \\\hline 15 & \text { Max's Wavetech } & 1683 & \$ 100 & 31 & \$ 3100 \\\hline\end{array}$

---

Definitions:

Controlling Interest

Ownership of more than 50% of a company's voting shares, which gives the shareholder a significant level of influence or control over the company.

Indirect NCI

Non-controlling interests (NCI) held by an entity indirectly through its control over intermediaries, reflecting a minority stake in the subsidiaries of the group.

Pre-acquisition Equity

Equity interest in a company that exists before a new acquisition or investment is made.