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Requirements 1. X-Perience's accountants predict that purchasing the bindings from Monroe will enable the company to avoid $2,000 of fixed overhead. Prepare an analysis to show whether X-Perience should make or buy the bindings 2. The facilities freed by purchasing bindings from Monroe can be used to manufacture another product that will contribute $2.700 to profit. Total fixed costs will be the same as if X-Perience had produced the bindings. Show which alternative makes the best use of X-Perience's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. Data table Direct materials Directlabor Variable overhead Fixed ov erhead $17,600 2,600 2. 100 7.100 Total manufacturing costs for 1,800 bindings Which altemative makes the best use of X-Perience's facilities? Decision: Buy the binding and leave the facilities idle. Buy the binding and use the facilities to m ake the other product. Maie the bindings. Part 1 X-Perience manufactures snowboards. Its cost of making 1,800 bindings is as follows: Requirement 1. Suppose Monroe will sell bindings to X-Perience for $12 each. X-Perience would pay $2 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.40 per binding. X-Perience's accountants predict that purchasing the bindings from Monroe will enable the company to avoid $2,000 of fixed overhead. Prepare an analysis to show whether X-Perience should make or buy the bindings. (Only enter the net relevant costs. For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the bindings in-house.) Requirement 1. X-Perience's accountants predict that purchasing the bindings from Monroe will enable the company to avoid $2,000 of Should X-Perience make or buy the bindings? Decision: Should X-Perience make or buy the bindings? Decision: Requireme urchasing bindings from Monroe c an be used to manufa Buy the bindings. Variable0 Make the bindings. Requirement 2. The facilities freed by purchasing bindings from Monroe can be used to manufacture another product that will contribute $2,700 to profit. Total fixed costs will be the same as ifX-Perience had produced the bindings. Show which alternative makes the best use of X-Perience's facilities. (Only enter the net relevant costs. Enter all costs as positive values. Use a minus sign or parentheses for decreases to net costs.) Requirement 2. The facilities freed by purchasing bindings from Monroe can be us ed to in anufacture another product that wi