CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 27 Answer saved Points out of 15.00 P Flag question Make or Buy Walsh Corporation currently makes the nylon mooring cover for its main product, a fiberglass boat designed for tournament bass fishing. The costs of producing the 2,000 covers needed each year follow: Nylon fabric Wood battens Brass fittings Direct labor Variable manufacturing overhead Fixed manufacturing overhead $325,000 64,000 32,000 128,000 96,000 160,000 Calvin Company, a specialty fabricator of synthetic materials, can make the needed covers of comparable quality for $325 each, F.O.B. shipping point. Walsh would furnish its own trademark insignia at a unit cost of $20. Transportation in would be $16 per unit, paid by Walsh Corporation Walsh's chief accountant has prepared a cost analysis that shows that only 30% of fixed overhead could be avoided if the covers are purchased. The covers have been made in a remote section of Walsh's factory building, using equipment for which no alternate use is apparent in the foreseeable future. a. Prepare a differential analysis showing whether or not you would recommend that the mooring covers be purchased from Calvin Company. If appropriate, use a negative sign with your answer to represent a net disadvantage answer. Do not use negative signs with any other answers Make or Buy Differential Analysis Cost to purchase covers: Costs avoided by purchasing covers: Direct materials 0 Direct labor 0 Variable manufacturing overhead Fixed manufacturing overhead 0 0 0 Net advantage (disadvantage) to purchase alternative b. Assuming that the production capacity released by purchasing the covers could be devoted to a subcontracting job for another company that netted a c pay for the covers? Round answer to two decimal places, if applicable. ontribution n margin of $65,000, what maximum purchase price could Walsh $ 0