v Make-or-Buy Decision omputers at a purchase price of $18 per unit. The company, which is currently Pizana Computer Company has been purchasing carrying cases for its portable 9% of direct labor cost. The unit costs to produce comparable carrying operating below full capacity, charges factory overhead to production at the rate of 40 cases are expected to be as follows: Direct materials $5.00 Direct labor 8.00 Factory overhead (40% of direct labor) 3.20 Total cost per unit $16.20 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 25% 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. If an | amount is zero, enter "0". If required, round your answers to two decimal places. Differential Analysis Make (Alt. 1) or Buy (Alt. 2) Carrying Case May 31 Line It D ot Make Carrying Case Buy Carrying Case Differential Effects ne deem D e (Alternative 1) (Alternative 2) (Alternative 2) Unit costs: Purchase price Direct materials Direct labor Variable factory overhead U Fixed factory overhead i b. Assuming there were no better alternative uses for the spare capacity, it would | vito manufacture the carrying cases. Fixed factory Total unit costs 000000 L00000