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25) alloo Make or Buy Decision Show Me How Hatchless Computer Company has been purchasing carrying cases for its portable computers at a purchase
25) alloo Make or Buy Decision Show Me How Hatchless Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $56 per unit. The company, which is cuently sping bow full co rate of 29% of direct labor cost. The fully absorbed unit costs to produce comparable carrying cases are expected to be as follows Direct materials Direct labor 128 17 Factory overhead (39% of direct labor) Total cost per unit 6.63 $51.63 If Matchless Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs acated with the cases are expected to be 13% of drect fator cs a. Prepare a differential analysis dated February 24 to determine whether the company should make (Alternative 13 or buy (Alternative 2) the carrying case. It required, round your answers to two decimal places t 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 (Alternative 1) Case (Alternative 2) on Income (Alternative 2) Sales Price Cost: Purchase price Direct materials per unit Direct labor per unit Variable factory overhead per unit Fixed factory overhead per unit Income (Loss)
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