Snipe Company has been purchasing a component, Part Q$,$ for $$19\mathrm{.}20$ per unit. Snipe is currently operating at $70\%$ of capacity, and no significant increase in production is anticipated in the near future. The cost of manufacturing a unit of Part Q is estimated as follows:

Line Item Description Manufacturing Cost

Direct materials $$11\mathrm{.}50$

Direct labor $4\mathrm{.}50$

Variable factory overhead $1\mathrm{.}12$

Fixed factory overhead $3\mathrm{.}15$

Total $$20\mathrm{.}27$

Question Content Area

Prepare a differential analysis report dated March $12$ of the current year. Round your answers to two decimal places. If an amount is zero, enter $"0".$

Differential Analysis

Make $($Alternative $1)$ or Buy $($Alternative $2)$ Part Q

March $12$

Line Item Description Make

Part Q

$($Alternative $1)$ Buy

Part Q

$($Alternative $2)$ Differential

Effects

$($Alternative $2)$

Unit costs: blank blank blank

$$-$ Select $-$

$$-$ Select $-$

$$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Total unit costs $Total unit costs

$Total unit costs

$Total unit costs

Question Content Area

Should the company make or buy the component?

The company should

the component.