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Make-or-Buy Decision Pizana Computer Company has been purchasing carrying cases for its portable computers at a purchase arice of $558 per unit. The campany, which
Make-or-Buy Decision Pizana Computer Company has been purchasing carrying cases for its portable computers at a purchase arice of \$558 per unit. The campany, which is currertiy operating below full capacity, charges factory overhead to production at the rate of 36% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: If Pizana Computer Company manufactures the carrying cases, fixed factory overhead costs will noc increase and variatie factory overhead costs assaciased with the cases are expected to be 13% of the direct labor costs. a. Prepare a differential analysis dated May 31 to determine whether the company should make (Aternative 1) or buy (Altemavive 2) the carrying case. Round your answers to two decimal places. If an amount is zero, enter "0", cases are expected to be 13% of the direct labor costs. a. Prepare a differential analysis dated May 31 to determine whether the company should make (Alternative 1) or buy (Aternative 2) the carrying case. Round your answers to two decimal places. If an amount is zero, enter " 0. Feeisbsok T chack My Wost a. For the make and buy atternatives provide the unit costs. Use percentage to separate variable and fixed costs, Determine the differential effect on inceene of the revenues, costs, and income (loss) by subtracting alcernative 1 from alternative 2 . b. Assuming there were no better alternative uses for the spare copacity, it would y to this decision
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