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Unit III: Relevant Costs and Short-Term Decision Making 3. Make or Huy Allen Corporation currenily makes the nylon convenible top for its main product; a Lo: fiberylass boat designed especially for water akiing. The costs of producing the 1.500 tops needed each year follow: Destin Company, a specialty fatricator of synuthetic maicrials, can atake the neded tops of cunigarable quality for 5390 each, FO.8. shipping point. Allen weded furnish is oun trademank imsignia at a ianis cont of $12. Thansportation would be 518 per unit, paid by Alles Comporation. Allen's chief accountant has prepared a cost analysis that sbows that only 20% of fixed uyerticad could be avoided if the tops are purchaved. The tops have been made in a meinute section of Allee'i factory building, using equipment for which no aliernate use is apparent in the foreseeable foture, Required a. Prepare a differential aralyxis showing whether or not you woult recommend that the coevertible tops be purchased from Dustin Company. b. Asxuming that the production capacity released by purchasing the tops could be devoted to a subcontracting job for another company that netted a contribution margin of $42,000, what maximum purchase price could Allen Corporation pay for the tops? c. Identify two important qualitative factors that Allen Corporation should consider in deciding whether to purchase the needed tops