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1. Cool Boards' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $1,900 of fixed overhead. Prepare an

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1. Cool Boards' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $1,900 of fixed overhead. Prepare an analysis to show whether Cool Boards should make or buy the bindings. 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $2,800 to profit. Total fixed costs will be the same as if Cool Boards had produced the bindings. Show which alternative makes the best use of Cool Boards's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. 1. Cool Boards' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $1,900 of fixed overhead. Prepare an analysis to show whether Cool Boards should make or buy the bindings. 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $2,800 to profit. Total fixed costs will be the same as if Cool Boards had produced the bindings. Show which alternative makes the best use of Cool Boards's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product

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