Make-or Buy Decision Companion Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $60 per unit. The company, which s curently operating below full capacity, charges factory overhead to production at the rate of 42 % of direct labor cost. The fully absorbed unit costs to are expected to be as follows: produce comparable carrying cases $27 Direct materials 20 Direct labor 8.4 Factory overhead (42% of direct labor) $55.4 Total cost per unit ir Companion Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead cost associated with the cases are expected to be 12 % of the direct labor costs. a. Prepare a differential analysis dated February 24 to determine whether the company should make (Alternative 1) or buy (Aiternative 2) h case. If required, round your answers to two decimal places. If an amount is zero, enter "0". For those boxes in which you must enter su negative numbers use a minus sign. Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2) February 24 Differential Effect Buy Carrying Make Carrying Case (Alternative 1) Case (Alternative 2) on Income (Alternative 2) Sales Price Costs Purchase price Direct materials per unit TCompanion Computer Company manufactures the carrying cases, fixed factory overhead costs willl not increase and variable factory overhead costs associated with the cases are expected to be 12 % of the direct labor costs. a. Prepare a differential analysis dated February 24 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carying case. If required, round your answers to two decimal places. If an amount is zero, enter "0". For those boxes in which you must enter subtracted o negative numbers use a minus sign. Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2) February 24 Differential Effect Make Carrying Case (Alternative 1) Case (Alternative 2) on Income (Alternative 2) Buy Carrying Sales Price Costs: Purchase price Direct materials per unit Direct labor per unit Variable factory overhead per unit Fixed factory overhead per unit Income (Loss) mau the b. Assuming there were no better alternative uses for the spare capacity, it would to this decision. factory overhead is