Cool Boards manufactures snowboards. Its cost of making 1,900 bindings is as follows: : (Click the icon to view the costs.) Suppose Topnotch will sell bindings to Cool Boards for $12 each. Cool Boards would pay $2 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.50 per binding. Read the requirements. Requirement 1. Cool Boards' accountants predict that purchasing the bindings from Topnotch will enable the company to avoid $2,400 of fixed overhead. Prepare an analysis to show whether Cool Boards should make or buy the bindings. (Only enter the net relevant costs. For the Difference column, use minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the bindings in-house.) Make Outsource Difference Binding costs Bindings Bindings (Make-Outsource) Requirements Variable costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Topnotch Transportation 1. Cool Boards' accountants predict that purchasing the bindings from Topnotch will enable the company to avoid $2,400 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 Topnotch 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' facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. Logo Total differential cost of 1,900 bindings Data Table Direct materials $ 17,560 Direct labor 3,300 Variable overhead 2,050 Enter any number in the edit fields and then click Check Answer. 6,700 Fixed overhead $ 29,610 Help Me Solve This DemoDocs Example Get More Help Total manufacturing costs for 1,900 bindings Check