Question: Pizana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $56 per unit. The company, which is currently
Pizana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $56 per unit. The company, which is currently operating below full capacty, charoes factory everthead to production at the rate of 43% of direct labor cost. The unit costs to produce comparable carrying cases are expected to b as follows: If Pisana 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 16% of the direct labor costs. a. Prepare a differendal anolysis doted May 31 to determine whether the company should make (Altemative 1) or buy (Alternative 2) the carrying case: Round your answers to two decimal places, If an amount is zero, enter " 0
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