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Paana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $58 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 44% of direct labor cost, The unit costs to produce comparable carrying cases are expected to be as foliows: If Pizana Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are eapected to be 16% of the direct labor costs. a. Prepare a deferential analyis dated May 31 to determine whether the company should make (Alternative 1 ) or buy (Alternative 2) the earrying ease. Round your answers to two decimal places. If an amount is zero, enter "o", If Pizana Computer Company manufactures the carrying cases, foxed factory overhead costs will not increase and variable factory overhead costs assoclated with the cases are expected to be 16% of the direct labor costs. a. Prepare a differential analysis dated May 31 to determine whether the company should make (Altemative 1) or buy (Alternative 2) the carrying case. Round your answers to two decimal places. If an amount is zero, enter "o", rowich 3 win a. For the make and buy alternatives provide the unt costs. Use percentage to separate variable and foxed costs. Determaine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 1 from alternative 2

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