K26 4 5 Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2) February 24 Differential Effect Buy Carrying Case Make Carrying on Income (Alternative 2) Case 9 (Alternative 1)(Alternative 2) Costs Purchase price Direct materials per unit Direct labor per unit Variable factory overhead per unit Fixed factory overhead per unit $ (59.00) (59.00) 35.00 18.00 2.70 59.00 (35.00) (18.00) (2.70) 5 6 Income (loss) Assuming there are no better uses for the spare capacity the carrying cases should be manufactured since costs per unit would decrease by $3 30 by doing so The fixed factory overhead is L. irrelevant. ] to the decision Ex. 25-7 K26 4 5 Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2) February 24 Differential Effect Buy Carrying Case Make Carrying on Income (Alternative 2) Case 9 (Alternative 1)(Alternative 2) Costs Purchase price Direct materials per unit Direct labor per unit Variable factory overhead per unit Fixed factory overhead per unit $ (59.00) (59.00) 35.00 18.00 2.70 59.00 (35.00) (18.00) (2.70) 5 6 Income (loss) Assuming there are no better uses for the spare capacity the carrying cases should be manufactured since costs per unit would decrease by $3 30 by doing so The fixed factory overhead is L. irrelevant. ] to the decision Ex. 25-7