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Cool Boards manufactures snowboards. Its cost of making 19,000 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will

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Cool Boards manufactures snowboards. Its cost of making 19,000 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Cool Boards for $11 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 $0.30 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 cont and your final answers to the nearest whole dollar. Use a mibus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy) Data Table TUU VEJA. ew the costs.) plier will sell bind ts own logo at ad ort the bindings to Direct materials .... Direct labor Variable manufacturing overhead Boards' accountan analysis to show w your final answer 22,000 81,000 44,000 81,000 company to avoid balances. Round column when the Fixed manufacturing overhead... ... 228,000 Analysis Decision Total manufacturing costs Cost per pair ($228,000 / 19,000) $ 12.00 Print Done he edit fields and the cost to buy.) Incremental Analysis Outsourcing Decision Variable Costs Make Bindings Buy (Outsource) Bindings Difference Plus: Fixed Costs Total cost of 19,000 bindings Reau ulereyunements. Total cost of 19,000 bindings Decision: Requirem profit. Tota make bind amounts to Make the bindings. purchasing bindings from the outside supplier can be used to as if Cool Boards had produced the bindings. Show which all ave facilities idle, or (c) buy bindings and make another produ inal answers to the nearest whole dollar.) Buy the bindings. Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3,400 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 "O" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearesthwhole dollar.) Incremental Analysis Outsourcing Decision (a) Make Binding Buy (Outsourco) Bindings (b) Leave (c) Make Facilities Idle Another Product Variable Costs Plus: Fixed Costs Total cost of 19,000 bindings Less: Profit from another product Net cost Decision: Enter any number in the edit fields and then continue to the next question. Variable Costs Plus: Fixe Total cost Less: Pro Buy the bindings and use the facilities to make another product. Buy the bindings and leave the facilities idle. Net cost Continue to make the bindings. Decision: Enter any number in the edit fields and then continue to the next

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