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Make-or-Buy Decision Companion Computer Company has been purchasing carrying cases for its portable computers at a purchase prjce of $60 per unit. The company, which

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Make-or-Buy Decision Companion Computer Company has been purchasing carrying cases for its portable computers at a purchase prjce of $60 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 42 % of direct labor cost. The fully absorbed unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $27 Direct labor 20 Factory overhead (42 % of direct labor) 8.4 Total cost per unit $55.4 If Companion Computer Company manufactures the carrying cases, fixed factory overhead con associated with the cases are expected to be 12 % of the direct labor costs costs will not increase and variable factory overhead cot a. Prepare a differential analysis dated February 24 to determine whether the company should make (Aitarnative 1) ar Suy (Aiternative 2) te can case. If required, round your answers to two decimal places. If an amount is zero, enter g. For those boxes in which you must anter s negative numbers use a minus sign. Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (At 2) February 24 Make Carrying Case (Alternative 1) Case (Alemative 2) on ncame ( Buy Carrying Gfnti Effe tiv Sales Price Costs: Purchase price Prepare a dferential analysis dated February 24 to determine whether the company should make (Aiternative 1) or buy (Atemative 2) the carrying case I required, round your answers to two decimal places. If an amount is zero, enter " For those boxes in wfhich you mustt enter subtracted or egative numbers use a minus sign Dferential Analysis Make Carrying Case (At 1) or Buy Carrying Case (At 2) February 24 Buy Carrying Case (Alternative 1) Case (Alternative 2) on Income (Alternative 2) Make Carrying Differential Effect Sales Price Costs Purchase price Direct materials per unit 27 Direct labor per unit 20 X Variable factory overhead per unit 2.4 24 Fixed factory overhead per unit 10.40 X 55.4 Income (Loss)

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