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Data table Data Table X - Perience manufactures snowboards. Its cost of making 1,890 bindings is as follows: (Click the icon to view the costs.)
Data table Data Table X - Perience manufactures snowboards. Its cost of making 1,890 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to X-Perience for $15 each. X-Perience 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 $0.40 per binding. Read the Requirement 1. X-Perience's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,000 of fixed overhead. Prepare an analysis to show whether the company 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.) Decision: Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3,300 to profit. Total fixed costs will be the same as if X - Perience had produced the bindings. Show which alternative makes the best use of X-Perience'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.)
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