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Cool Boards manufactures snowboards. Its cost of making 1,700 bindings is as follows: (Click the icon to view the costs) Suppose Livingston will sell
Cool Boards manufactures snowboards. Its cost of making 1,700 bindings is as follows: (Click the icon to view the costs) Suppose Livingston will sell bindings to Cool Boards for $15 each. Cool Boards would pay $3 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 Read the requirements Requirement 1. Cool Boards' accountants predict that purchasing the bind (Only enter the net relevant costs. For the Difference column, use a minus s Data table Maka Outs Direct materials 17.510 Binding costs Bindings Bind Direct labor 3.300 Vanable costs Variable overhead 2,120 Direct materials 7,000 Fixed overhead Direct labor 29.930 Total manufacturing costs for 1,700 bindings Variable overhead Fixed costs Purchase price from Livingston Transportation Lege Total differential cost of 1,700 bindings Should Cool Boards make or buy the bindings Decision Print Done halysis to show whether Cool Boards should make or buy the in-house) Requirement 2. The facilities freed by purchasing bindings from Livingston can be used to manufacture another product that will contribute $2,000 to profit. Total Exed costs will be the same as if Cool Boards had produced the binding which atemative makes the best use of Cool Boards facities (Only enter the net relevant costs. Enter all costs as positive values Use a minus sign or parentheses for decreases.30.oet.costs)
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