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Pizana Compluter Compary hat been purchating camping caves for as portabie temputers at a purchase price of t55 per ont The company, which is cuntently

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Pizana Compluter Compary hat been purchating camping caves for as portabie temputers at a purchase price of t55 per ont The company, which is cuntently operating beiow ful capacty. charges factery overibad to production at the rate of 36W af dirnct labor cost. The urit costs to probuce congatatile carming cates are ukpected to be as fallows: If Pizens Computer Compaoy manufactures the carrying cases, fixed factocy overhead costs wit not ineresse and yariabie factory overtiead costs assocated with the casis are enpected to be 12 of the direct laber costs. A. Hrepare d differemial analyus dated May 31 to detemene whether the company aboud make (Adtemative 1) or buy (Aiterneme 2) the campeng case. Reund your answers to two decimal places, If an amoust is rero, enter "0\%. and incame (loss) by zubtracting alternithe 1 from aternuive 2 to this decielon. variable production soits tor the now maching oce eoutimated to be $95,500 per yearfor A yeats required, use a minus sign to indicate a foss: an-2 betermine whother to continue wath (Alematlve 1) or replace (Alternvtore 2) the ofd mischine. compare the differential revenued and efferentist conts of continuing vis replecing, Which ohe has the groatest pasitve dillerestial ofrect on income? b. What is the siank cost in this vitumacic? The sank cost is 1 x

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