1. Winter Sports" accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,300 of fix: overhead. Prepare an analysis to show whether the company 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 $2,700 to profit. Total fixed costs will be the same as if Winter Sports had produced the bindings. Show which alternative makes the best use of Winter Sports' facilities: (a] make bindings, (bj buy bindings and leave facilities idle, or (c) buy bindings and make another produc (1) 0 Make the bindings. (2) O Continue to make the bindings. Buy the bindings. Q) Buy the bindings and leave the facilities idle. O Buy the bindings and use the facilities to make another product.B. Winter Sports manufactures snowboards. Its cost of making 24,900 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Winter Sports for $14 each. Winter Sports will pay $2.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.60 per binding. Read the requirements" Requirement 1. Winter Sports" accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,300 of fixed overhead. Prepare an analysis to show whether the company should make or buy the bindings. (Enter a "Of for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar. Use a minus sign or parentheses in the Difference column when the post to make exoseds the cost to buy. ) Incremental Analysis Make Buy (Outsource) Outsourcing Decision Bindings Bindings Difference Variable Costs Plus: Fixed Costs Total cost of 24,900 bindings Decision: (1) Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $2,700 to profit. Total fored costs will be the same as if Winter Sports had produced the bindings. Show which alternative makes the best use of Winter Sports' facilities (a) make bindings, (b) buy bindings and leave facilities idle, or (o) buy bindings and make another product. (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar.) Buy (Outsource) Bindings Incremental Analysis [a) Make c) Make Outsourcing Decision Binding Facilities Idle Another Product Variable Costs Plus: Fixed Costs Total cost of 24,800 bindings Loss: Profit from another product Not post Decision: (2) 1: Data Table Direct materials . . . ... 27,000 Direct labor. . .. 841000 Variable manufacturing overhead . .... 54,000 Fixed manufacturing overhead . 84 000 $ 249,000 Total manufacturing costs . Cost por pair ($249,000 + 24,900) . . ... 10.00 2: Requirements