Question: Pizana Computer Company has been purchasing carving cases for its portable computers at a purchase price of s58 per unik. The earnpany, which is currently

Pizana Computer Company has been purchasing carving cases for its portable computers at a purchase price of s58 per unik. The earnpany, which is currently operating below full capacity, charges factory overhead to production at the rate of 45% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: If Pizana Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead casts associated with the cases are expected to be 12% of the direct labor costs. a. Prepare a differential analysis doted May 31 to determine whether the company should make (Altemative 1) or buy (Atemative 2) the carrying case. Round your answers to two decimal places. If an amount is zero, enter " 0+. Differential Analysis b. Assuming there were no better alternative uses for the spare capacity, it would to manufacture the carrying cases. Fixed factory overhead is to this decision
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