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Make or Bury covers needed each year follow Nylon fabric Walsh Corporation currenty makes the nylon mooring cover for its main product, a fiberglass boat

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Make or Bury covers needed each year follow Nylon fabric Walsh Corporation currenty makes the nylon mooring cover for its main product, a fiberglass boat designed for tournament bass fishing The costs of producing the 2,000 $325,000 Wood bactens Brass ctings Direct labor Variable manufacturing overhead 64,000 2.000 28,000 6,000 160,000 Calvin Company, a specialty fabricator of synthetic materials, can make the needed covers of comparabie quelity for $325 each FQB shipping point. Walsh would furnish its own tredemark insignia at a unit cost of $20. Transportation in would be $16 per unit, paid by Waish Corporation waish's chiefaccountant has prepared a cost anays that shows that on y 30% of fixed overhead could be oded if the covers are purcased The covers have been made in a remote section of Walsh's factory building using equipment for which no a ternate use is a e. 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 using equipment for which no a ternate use is apparent in the foreseeable future Make or Buy Differential Analysis Cost to purchase covers Costs avoided by punchasing covers Direct maceries Direct labor Varable manufactuing overbeasd b Assuming thet the production capacity re eased by purenssngthe covers couid be devoted to a subcontract ng job for anoeher compeny that nected a contribution margin of s65.000, what maximum purchase price could Waish pay for the covers? Round answer to two decima places if applicable arch

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