17 companion Computer Company has been purchasing carrying cases for its portable computers at a urchase price of $60 per unit. The company, which is currently operating below full capacity, harges factory overhead to production at the rate of 41% of direct labor cost. The fully absorbed init costs to produce comparable carrying cases are expected to be as follows: Direct materials $25 Direct labor Factory overhead (41% of direct labor) Total cost per unit $48.97 f Companion Computer Company manufactures the carrying cases, fixed factory overhead costs will ot increase and variable factory overhead costs associated with the cases are expected to be 15% of the direct labor costs. 6.97 a. Prepare a differential analysis dated February 24 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. If required, round your answers to wo decimal places. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2) February 24 Make Carrying Buy Carrying Differential Effect Case Case on Income (Alternative 1) (Alternative 2) (Alternative 2) Sales Price o o Costs: Purchase price o 60 X 60 x Direct materials per unit 25 X -25 X Direct labor per unit 17 X -17 X Variable factory overhead 2.55 X -2.55 X per unit Fixed factory overhead per o unit 0 $ 0 0 60 Income (Loss) 5.45 X 15.45 X