- Cool Boards manufactures snowboards. Its cost of making 1,880 bindings is as follows: Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Cool Boards for $14 each. Cool Boards 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 $0.70 per binding. 54 Read the resuirements 31 Data Table Requirement 1. Cool Boards' accountants $3. mpany to avoid $1,800 of fixed overhead. Prepare an analysis to show whether Cool ind any per unit amounts to the nearest cont and your final answers to the nearest whole to make exceeds the cost to buy) 65 Direct materials $ 18,250 Incremental Analysis Direct labor 3,300 Outsourcing Decision $2 Variable manufacturing overhead 2,100 Variable Costs 6,900 Fixed manufacturing overhead. Plus: Fixed Costs Total manufacturing costs 30,550 Standi Total cost of 1,880 bindings shes Cost per pair ($30,550 /1,880) $ 18.25 Decision: $ product that will contribute $2,800 to profit. Jof Cool Boards's facilities: (a) make dalances. Round any per unit amounts to the Requirement 2. The facilities freed by purch Print Done Total food costs will be the same as if Cool bindings. (b) buy bindings and leave facilitiebroru nearest cent and your final answers to the nearest whole dollar.) Buy (Outsource) Bindings Enter any number in the edit fields and then continue to the next question s Cool Boards manufactures snowboards. Its cost of making 1,880 bindings is as follows: Click the icon to viow the costs.) Suppose an outside supplier will sell bindings to Cool Boards for $14 each. Cool Boards 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 $0.70 per binding. Read the requirements. $4 $ $3 65 Requirement 1. Cool Boards' accountants predict that purchasing the bindings from the outsido supplier will enable the company to avoid $1,800 of fixed overhead, Prepare an analysis to show whether Cool Boards should make or buy the bindings. (Enter a "O" 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 cost to make exceeds the cost to buy) Incremental Analysis Make Buy (Outsource) Outsourcing Decision Bindings Bindings Difference Variable Costs Plus: Fixed Costs $2 is Stand Total cost of 1,880 bindings urshes Decision Requirement 2. The facilities freed by purchasing bindings from the outside suppler can be used to manufacture another product that will contributo $2,800 to profit. Totalfoved costs will be the same as if Cool Boards had produced the bindings. Show which alternative makes the best use of Cool Boards's facilities: (a) mako bindings. (b) buy bindings and leave facilities ide, or (e) buy bindings and make another product. (Enter a for any or balances. Round any per unit amounts to the nearest cont and your final answers to the nearest whole dollar) Buy (Outsource) Bindings Enter any number in the edit fields and then continue to the next question S 65 Cool Boards manufactures snowboards. Its cost of making 1,880 bindings is as follows: Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Cool Boards for $14 each. Cool Boards will pay $2.00 per unit to transport the bindings to its manufacturing plant, $4 where it will add its own logo at a cost of $0.70 per binding, Read the requirements $11 SB Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contributo $2,800 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's facilities: (a) make bindings. (b) buy bindings and leave facilities idle, or (e) buy bindings and make another product (Enter a "O" 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 Another Product Variable Costs Plus: Foxed Costs Total cost of 1,000 bindings Less: Profit from another product Netcost Stand arshes Decision Enter any number in the edit fields and then continue to the next