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cases are expected to be as follows: If Companion Technologies Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory
cases are expected to be as follows: If Companion Technologies Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overiated the cases are expected to be 14% of the direct labor costs. a. Prepare a differential analysis report for the make-or-buy decision. Enter your final answer as a positive amount if it represents a net cost savings; enter a negative amount if it represents an increase in cost. T Check My Work a. Follow Exhibit 8 in the text. For the make alternative, add the variable and fixed costs. For the buy alternative, add the purchase price and the fixed costs. Determine the differential effect on revenues, costs, and income (loss). On the basis of the data presented, would it be advisable to make the carrying cases or to continue buying them? t would be advisable the carrying cases because the would be $ per unit. Fixed factory overhead is since it will continue whether the carrying cases are purchased or manufactured . Feedback Theck My Work b. Remember that fixed factory overhead is irrelevant to the decision because it will continue whether the carrying cases are purchased or manufacture Consider the differential revenues and costs in your
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