Pizana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $$59$ per unit. The company, which is currently

operating below full capacity, charges factory overhead to production at the rate of $41\%$ 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 not increase and variable factory overhead costs associated with the

cases are expected to be $12\%$ of the direct labor costs.

a$.$ Prepare a differential analysis dated May $31$ to determine whether the company should make $($Alternative $1)$ or buy $($Alternative $2)$ the carrying case. Round your

answers to two decimal places. If an amount is zero, enter $"0".$

Differential Analysis

Make $($Alt$.1)$ or Buy $($Alt$.2)$ Carrying Case

May $31$