Make-or-Buy Decision Company has been purchasing carrying cases for ts portable computers at a purchase price of $61 per unit. The company, which Fremont Computer is currently operating below full capacity, charges factory overhead to production at the rate of comparable carrying cases are expected to be as follows: Direct materials Direct labor Factory overhead (40% of direct labor) Total cost per unit y has been purchasing carrying cases for its portable computers at a purchase price of $61 per 40% of direct labor cost. The unit costs to produce $25 20 $53 If Fremont Computer Company manufactures the carrying cases, fixed factory overhead costs will not associated with the cases are expected to be 16% of the direct labor costs. ncrease and variable factory overhead costs a. Prepare a differential analysis dated September 30 to determine whether the company should make (Alternative 1) carrying case. If required, round your answers to two decimal places. If an amount is zero, enter "O". Use a minus sign to indicate a loss. or buy (Alternative 2) the Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2) September 30 Make Carrying Case (Alternative 1) Buy Carrying Case (Alternative 2) Differential Effect on Income (Alternative 2) Sales price Unit costs: Purchase price Direct materials Direct labor DrevieuG Next