Question 7 Not complete Marked out of 8.00 P Flag question Make or Buy Walsh Corporation currently makes the nylon mooring cover for its main product, a fiberglass boat designed for tournament bass fishing. The costs of producing the 2,000 covers needed each year follow. Nylon fabric 5320.000 Wood battens 64.000 Brass fittings 32.000 Direct labor 128.000 Variable manufacturing overhead 96,000 Fixed manufacturing overhead 170,000 Support Calvin Company, a specialty fabricator of synthetic materials, can make the needed covers of comparable quality for $290 each, F.O.B. shipping point. Walsh would furnish its own trademark insignia at a unit cost of $20. Transportation in would be 515 per unit, paid by Walsh Corporation Walsh's chief accountant has prepared a cost analysis that shows that only 30% of fixed overhead could be avoided if the covers are purchased. The covers have been made in a remote section of Walsh's factory building, using equipment for which no alternate use is apparent in the foreseeable future. a. Prepare a differential analysis showing whether or not you would recommend that the mooring covers be purchased from Calvin Company If appropriate, use a negative sign with your answer to represent a net disadvantage answer. Do not use negative signs with any other answers. a. Prepare a differential analysis showing whether or not you would recommend that the mooring covers be purchased from Calvin Company. If appropriate, use a negative sign with your answer to represent a net disadvantage answer. Do not use negative signs with any other answers Make or Buy Differential Analysis Cost to purchasecovers: Costs avoided by purchasingcovers: Direct materials Direct labor Variable manufacturing overhead 0 Fixed manufacturing overhead Net advantage (disadvantage to purchase alternative b. Assuming that the production capacity released by purchasing the covers could be devoted to a subcontracting job for another company that netted a contribution margin of 564,000, what maximum purchase price could Walsh pay for the covers? Round answer to two decimal places, if applicable