Data table Direct materials 96 17:600 Direct labor 3:300 Variable overhead 2050 Fixed overhead 5:500 99 293450 Total manufacturing costs for 1,7013 bindings Winter Sports manufactures snowboards its cost of making 1:700 bindings is as follows: @ (Click the icon to View the costs) Suppose Monroe wrll sell bindings to Winter Sports for $14 each, Winter Sports 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 murrements. Requirement 1. Winter Sports' accountants predict that purchasing the bindings from Monroe will enable the company to avoid $2600 of xed overhead. Prepare an analysis to show whether Winter Sports should make or buy the bindings (Only enter the net relevant costs, For the Difference column use a minus Sign or parentheses only when the cost of outsourcrng exceeds the cost of making the bindings in-house) Make Outsource Difference Binding costs Bindings Bindings [MakeOutsource) Variable costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Monroe Transportation Logo Total differential cast of 1.700 bindinas Should Winter Sports make or buy the bindings? Decision: Requirement 2. The facilities freed by purchasing bindings from Monroe can be used to manufacture another product that will contribute $3,500 to profit. Total fixed costs will be the same as if Winter Spo had produced the bindings. Show which alternative makes the best use of Winter Sports' facilities. (Only enter the net relevant costs. Enter all costs as positive values. Use a minus sign or parentheses fo decreases to net costs.) Outsource Bindings Make Facilities Make New Binding costs Bindings Idle Product Variable Costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from MonroeTransportation Logo Expected prot from new product Expected net cost of obtaining 1,70-3 bindings = = Which alternative makes the best use of Winter Sports' facilities? Decision: 1' Requirements 1. Winter Sports' accountants predict that purchasing the bindings from Monroe will enable the company.r to avoid 52.600 of fixed overhead. Prepare an analysis to show whether Winter Sports should make or bu},r the bindings. 2. The facilities freed by purchasing bindings from Monroe can be used to manufacture another product that will contribute $3,500 to profit. Total fixed costs will be the same as if Winter Sports had produced the bindings. Show which alternative makes the best use of Winter Sports' facilities: (a) make bindings, {bi buv bindings and leave facilities idle, or (c) buy.r bindings and make another product