Make-or-Buy Decision Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $40 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 25% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows Direct materials Direct labor Factory overhead (25% of direct labor) Total cost per unit If Fremont Computer 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 5% of the direct labor costs. a. Prepare a differential analysis dated September 30 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the $16 20 $41 carrying case. If an amount is zero, enter "O". If required, round your answers to two decimal places. Use a minus sign to indicate a loss. Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2) 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 rect labor ctory overhead (25% of direct labor) tal cost per unit 20 $41 Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs sociated with the cases are expected to be 5% of the direct labor costs. Prepare a differential analysis dated September 30 to determine whether the company should make arrying case. If an amount (Alternative 1) or buy (Alternative 2) the t is zero, enter "O". If required, round your answers to two decimal places. Use a minus sign to Indicate a loss 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 Variable factory overhead Fixed factory overhead Income (loss)