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Pizana Computer Company has been purchasino camying cases for its portable computers at a purchase price of s60 per unit. The company, which is currently

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Pizana Computer Company has been purchasino camying cases for its portable computers at a purchase price of s60 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 42% 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 wil not increase and variable factory overhead costs associated 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 (Altemative 1) or buy (Altemative 2) the carrving case Round your answers to two decimal places. If an amount is zero, enter ro". 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 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 (Alternative-2) the carrying case. Round your answers to two decimal places. If an amount is zero, enter 0. b. Assuming there were no better alternative uses for the spare capaciy, it would to manifscture the cariving cases. Fixed factory overhead is to this decision

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