(Solved): Pizana Computer Company has been purchasing carrying cases for its portable computers at a purchase ...

Pizana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $\$56$ per unit. The compony, which is currentiy operating below full capacity, charges factory overhead to production at the rate of $45\%$ of direct labor cost. The unit costs to produce comporable cairying coses are expected to be as follows: If Pizana Computer Company manufactures the carrying coses, foxed foctory overheod costs will not increase and yariable factory overhead costs assocated with the cases are expected to be $12\%$ of the direct labor costs. a. Prepare a dirferential analysis dated May 31 to detechmine whether the compony should make (Aternative-1) or buy (Alternative 2) the carrying case. Round your answers to two decimal places. It an amount is zero, enter " $0^{?}$. If Pizana Computer Company manufactures the carrying cases, fixed factory overheod costs will not increase and yariable factory overhead costs associated with the coses are expected to be $12\%$ of the direct labor costs a. Prepare a differentiol analysis dated May 31 to determine whether the company should make (Alternative 1) or buy (Atternative 2) the carrying case. Round your answers to two decimal places. If an amount is rero, enter *o". b. Assuming there were-no better alternative uses for the spare cepacty, it would to mantfocture the carrying cases. Fired factory overtiead is to this decision.