2nd part to question I just sent
Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3,300 to profit. Total fixed costs will be the same as if Outdoor Life had produced the bindings. Show which alternative makes the best use of Outdoor Life's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar.) Buy (Outsource) Bindings Incremental Analysis (a) Make (b) Leave (c) Make Outsourcing Decision Binding Facilities Idle - X Another Product i Data Table Variable Costs Plus: Fixed Costs Direct materials. . 17,500 Total cost of 1,900 bindings . .. . . ....$ Direct labor. . 3,000 Less: Profit from another product Variable manufacturing overhead . 3,230 Net cost Fixed manufacturing overhead . .. 7,050 Decision: 30,780 Total manufacturing costs ...... Cost per pair ($30,780 + 1,900) 16.20 Enter any number in the edit fields and then continue to the next question. i Requirements X Print Done 1. Outdoor Life's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,200 of fixed overhead. Prepare an analysis to show whether the company should make or buy the bindings 2. The facilities freed by purchasing purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3,300 to profit Total fixed costs will be the same as if Outdoor Life had produced the bindings Show which alternative makes the best use of Outdoor Life's facilities (a and makes (@) make bindings, (b) buy bindings and leave facilities idle, or (C) buy bindings and make another product. Type here to search 9:44 PM 3/15/2021