please answer correctly

Enter a zero in cells you would otherwise leave blank a. Differential Analysis Make or Buy Carrying Case July 19 Make Carrying Case (Alternative 1) Buy Carrying Case (Alternative 2) Differential Effect on Income (Alternative 2) Costs: Purchase price Direct materials per unit Direct labor per unit Variable factory overhead per unit Fixed factory overhead per unit Income (oss) Direct materials per unit Direct labor per unit Variable factory overhead per unit Fixed factory overhead per unit Income (loss) Assuming there are no better uses for the spare capacity, the carrying cases should be since costs per unit would by by doing so The fixed factory overhead is to the decision EX 24-7 Make-or-buy decision OBJ. 1 Jupiter Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $70 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 fully absorbed unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $45 Direct labor 20 Factory overhead (40% of direct labor) 8 Total cost per unit $73 If Jupiter 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 15% of the direct labor costs. a. Prepare a differential analysis, dated July 19 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. b. On the basis of the data presented, would it be advisable to make the carry- ing cases or to continue buying them? Explain