Make or Buy Decision: ZeeDrive Ltd. is a computer manufacturer. One of the items they make is monitors. ZeeDrive has the opportunity to purchase 18,000 monitors from an outside supplier for $208 per unit. One of the company's costeaccounting interns prepared the following schedule of ZeeaDrive's cost to produce 18,000 monitors: Total cost of producing 18,000 monitors Unit cost Direct materials $ 2,088,000 $116 Direct labor 1,260,000 70 Variable factory overhead 594,000 33 erd manufacturing overhead 504,000 28 erd nonmanufacturing overhead 702,000 39 $ 5,148,000 $286 You are asked to iook over the intern's estimate before the information is shared with members of management who will decide to continue to make the monitors or buy them. The company's controller believes that the estimate may be incorrect because it includes costs that are not relevant. If Zee7Drive buys the monitors, the direct labor force currently employed in producing the monitors will be terminated and there would be no termination costs incurred. There are no materiais on hand and no commitments to suppliers to purchase materials, so all materials would need to be purchased to make the monitors. Variable overheads are avoidable if monitors are bought. Fixed manufacturing overhead costs would be reduced by $43,000, but nonamanufacturing costs would remain the same if monitors are bought. Fill in the differential analysis. Make or Buy Decisions Differential Analysis Report Purchase price of 18,000 monitors $ 3,744,000 Differential cost to make: Direct materials 2,088,000 Direct labor 1,260,000 Overhead X Differential income (loss) from making monitors