Make-or-Buy Decision Pizana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $18 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 40% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Line Item Description Amount Direct materials $5.00 Direct labor 8.00 Factory overhead (40% of direct labor) 3.20 Total cost per unit $16.20 If Pizana 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 25% of the direct labor costs. Question Content Area a. Prepare a differential analysis dated May 31 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. If an amount is zero, enter "0". If required, round your answers to two decimal places. Differential Analysis Make (Alt. 1) or Buy (Alt. 2) Carrying Case May 31 Line Item Description Make Carrying Case (Alternative 1) Buy Carrying Case (Alternative 2) Differential Effects (Alternative 2) Unit costs: Purchase price $Purchase price $Purchase price $Purchase price Direct materials Direct materials Direct materials Direct materials Direct labor Direct labor Direct labor Direct labor Variable factory overhead Variable factory overhead Variable factory overhead Variable factory overhead Fixed factory overhead Fixed factory overhead Fixed factory overhead Fixed factory overhead Total unit costs $Total unit costs $Total unit costs $Total unit costs Question Content Area b. Assuming there were no better alternative uses for the spare capacity, it would to manufacture the carrying cases. Fixed factory overhead is to this decision