Question: Make-or-Buy Decision Matchless Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $59 per unit. The company, which

 Make-or-Buy Decision Matchless Computer Company has been purchasing carrying cases for

Make-or-Buy Decision Matchless 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 41% of direct labor cost. The fully absorbed unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $24 Direct labor 16 Factory overhead (41% of direct labor) 6.56 Total cost per unit $46,56 11 Matchless Computer Company manufactures the carrying cases, foedactory overhead costs will not increase and variable factory overheed costs associated with the cases are expected to be 16% of the direct labor costs a. Prepare a differential analysis dated February 24 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. It required, round your answers to w decimal places. If an amount is zero, enter to". For those boxes in which you must enter subtracted or negative numbers use a minus sign Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2) February 24 Make Carrying Buy Carrying Differential Effect Case (Alternative 1) Case (Alternative 2) on Income (Alternative 2) Sales Price Costs Purchase price Direct materials per unit Direct labor perunt Variable factory overhead per unit Fixed factory overhead per unit Income (LO) . Arouming there were no better ternative uses for the spare capacity, I would decision to manufacture the carrying cases, Fixed factory overhead is to this BMW Om

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