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 $3.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.40 per binding. Read the requirements. Requirement 1. Cool Boards' 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 Cool Boards should make or buy the bindings. (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. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy.) Make Incremental Analysis Outsourcing Decision Buy (Outsource) Bindings Bindings Difference Variable Costs Plus: Fixed Costs Total cost of 1,880 bindings Decision: Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3,500 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 (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 (a) Make (b) Leave (c) Make Incremental Analysis Outsourcing Decision Binding Facilities Idle Another Product Variable Costs Plus: Fixed Costs Total cost of 1,880 bindings Less: Profit from another product Net cost Decision: Enter any number in the edit fields and then continue to the next question. i Data Table $ Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 18,250 3,300 2,100 6,900 $ 30,550 Total manufacturing costs Cost per pair ($30,550 / 1,880) $ 16.25 Print Done i Requirements 1. Cool Boards' 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 Cool Boards 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 $3,500 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 (C) buy bindings and make another product. Print Done