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 $320,000 Wood battens Brass fittings 64,000 32,000 Direct labor 128,000 Variable manufacturing overhead 96,000 Fixed manufacturing overhead 170,000 Calvin Company, a specialty fabricator of synthetic materials, can make the needed covers of comparable quality for $290 each, F.O.B. shipping point. Walsh would furnish its own trademark insignia at a unit cost of $20. Transportation in would be $15 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 purchasecovers: $ 0 x Costs avoided by purchasingcovers: Direct materials $ 0 x Direct labor Fixed manufacturing overhead Variable manufacturing overhead 128,000 96,000 0 x 0 x Net advantage (disadvantage) to purchase alternative $ 0 x b. Assuming that the production capacity released by purchasing the covers could be devoted to a subcontracting job for another company that netted a contribution margin of $64,000, what maximum purchase price could Walsh pay for the covers? Round answer to two decimal places, if applicable. $ 0 Check