Question: Make - or - Buy DecisionPizana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $ 5 9

Make-or-Buy DecisionPizana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $59 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 39% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows:Line Item DescriptionAmountDirect materials$30.00Direct labor20.00Factory overhead (39% of direct labor)7.80Total cost per unit$57.80.

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