Please answer using same format?

tial loss $330 EX 25-7 Make-or-buy decision OBJ. 1 Diamond Computer Company has been purchasing carrying cases for its portable comput- ers 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 40% of direct labor cost. The fully absorbed unit costs to produce comparable carrying cases are expected to be as follows: Direct materials Direct labor Factory overhead (40% of direct labor) Total cost per unit $35.00 18.00 7.20 $60.20 If Diamond Computer Company manufactures the carrying cases, fixed factory over- head costs will not increase and variable factory overhead costs associated with the cases are expected to be 15% 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. b. On the basis of the data presented, would it be advisable to make the carry- ing cases or to continue buying them? Explain. An astenskappear to Enter 3 zero in cells you would otherwise leave blank Ostereital Effect on Income (Alternative 2) Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (AR. 2) February 24 Make Carrying Buy Carrying Case Case (Alternative 1) (Alternative 21 Costs Purchase price Direct matenals per unit Direct labor per unit Vanable factory overhead per unit Fuced factory overhead per unit Income (loss) 6 9 b. 30 Assuming there are no better uses for the spare capacity 52 the carrying cases should be since costs per unit would by by doing so The fixed factory overhead is to the decision 38