Question: Pizana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $58 per unit. The company, which is currently
Pizana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $58 per unit. The company, which is currently eperati below full capacty, charges factory overhead to production at the rate of 46% of direct fabor cost. The unit costs fo produce cornparable carrying caise dire ex; icted te be as follows: If Pizana Computer Company manufactures the carrying cases, foxed factory civarhead costs will not increase ond vanable factory overhead costs assiocioted with the cases are expected to be 14% of the dired labor costr. a. Prepare a differential analyzis dated May 31 to determine whether the compony should make (Alternative i) or biyy (Alternative 2 ) the carrying case Roumef your answers to two decimal places. If ar arnount is zero, enter " 0
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