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Make-or-Buy Decision Companion Technologies Company has been purchasing carrying cases for its portable tablets at a delivered cos of $55 per unit. The company, which
Make-or-Buy Decision Companion Technologies Company has been purchasing carrying cases for its portable tablets at a delivered cos of $55 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 46% of direct labor cost. The total unit costs to produce comparable carrying cases are expected to be as follows: If Companion Technologies Company manufactures the carrying cases, fixed factory overhead costs will 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 a nalysis report for the make-or-buy decision. Enter your final answer as a positive amount if it represents a net cost savings; enter a negative amount if it represents an increase in cost
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