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Prom Make-or-Buy Decision Somerset Computer Company has been purchasing carrying cases for its portable computer M a purchase price of 562 per unit. The cogany,

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Prom Make-or-Buy Decision Somerset Computer Company has been purchasing carrying cases for its portable computer M a purchase price of 562 per unit. The cogany, which is can be charpes day production at the rate of 39% of direct laber cost. The unit costs to produce corte carrying cases are expected to be as follows Direct materials Direct labor Factory overhead (39% of direct labor) 7.8 Total cost per unit $53.8 If Somerset Computer Company manufactures the carrying cases, fed factory overhead costs will increase and we factory react with the cause expected to be $26 Buy a. Prepare a differential analysis dated Apr 30 to determine whether the company should make Alternative 1) or buy native the carrying carried, round your answers to we decimal places amount is ere, enter"0" Differential Analysis Make Carrying Case (Art. 1) or Buy Carrying Case (Art. 2) April 30 Make Carrying Carrying Differential Case Case Effects (Alternative 1) (Alternative 2) (Alternative) Unit costs Purchase price Direct materials Direct labor Variable factory overhead Fixed factory overhead Total unit costs to manufacture the carrying cases, we factory overheads b. Assuming there were no better alternative uses for the pure capacity, it would

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