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4 parts, need all requirements. Thank you Cool Boards marufacturos snowboards. Its cost of making 1,890 bindings is as follows: Click the icon to view
4 parts, need all requirements. Thank you
Cool Boards marufacturos snowboards. Its cost of making 1,890 bindings is as follows: Click the icon to view the costs Suppose an outside supplier will sell bindings to Cool Boards for $17 each Cool Boards will pay $2.00 per unit to transport the findings to its manufacturing plant, where it will add its own logo at a cost of $0 70 per binding Read the requirements Requirement 1. Cool Boards' accountants predict thot purchasing the bindings from the outside supplier will enable the company to avoid $2,600 of fixed overhead Prepare an analysis to show whether the company should make or buy the bindings. (Enter a "0" for any zero balances Round any per unit amounts to the nearest cont and your final answers to the nearest wiele dollar Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy) Incremental Analysis Make Buy (Outsource) Outsourcing Decision Bindings Bindings Difference Variable Costs Plus: Fixed Costs Total cost of 1.890 bindings X Data table boards. Its sts.) Sell binding cost of $0 the bir Direct.materials. ---- Direct.labor .. Variable manufacturing overhead..... Fixed manufacturing overhead..... 18,000 3,200 2,340 6,700 puntants her the co nearest w $ 30,240 Total, manufacturing.costs. Cost.per.pait ($30,240. = 1,890) mpany und an e cost to ..$ 16.00 . Print Done Requirements 1. Cool Boards' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,600 of fixed 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 $3,400 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' facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. Print Done Step by Step Solution
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