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Fremont Computer Company has been purchasing cartying cases for its portable computers at a purchase price of $59 per unit. The company, which is currentfy

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Fremont Computer Company has been purchasing cartying cases for its portable computers at a purchase price of $59 per unit. The company, which is currentfy operatin below full capacty, charges factory overhead to production at the rate of 43% of direct labor cost. The unit costs to produce comparable camying cases are expected to be as follows: If Fremont Computer Campany mansfactures the carrying cases, fixed factory overhesd costs will not increase and variable factory overhead costs associated with the cases are expected to be 13% of the direct labor costs. a. Prepere a The area of accounting concemed with the effect of altemative courses of action on revenues and costs. .iternative 2) the camving case. If Fremont Computer Company manufactures the carrying cases, foxed factory overhead costs will not increase and variable foctory overheod costs associated with the ases are expected to be 13% of the direct labor costs. a. Prepare a differenkial analysis dated September 30 to determine whether the company sbould make (Aternative 1) or buy (Aiternative 2) the carrying case. If required, round your answers to two decimal places. If an amount is zero, enter "0*, Use a minus sign to indicate a loss. b. Assuming there were no better alternatlye uses for the spare capacity, wi would to manufacture the carrving cases. Fxed factory overhead is to this decision

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