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Data table Requirements 1. Wrier Sports' accountants predict that purchasing the bindings trom Lancaster wil enable the company to avold $2,500 of fixed overhead. Prepare
Data table Requirements 1. Wrier Sports' accountants predict that purchasing the bindings trom Lancaster wil enable the company to avold $2,500 of fixed overhead. Prepare an analysis to show whether Winter Sports should make or buy the bindings. 2. The facities freed by purchasing Bindings from Lancaster can be used to manufacture another product that will contribute $3,600 to pront. Total foced conts will be the same as at Winter Sports had produced the bindings. Show which alternative makes the best use of Witer Sporis' tacities: (a) make bindings, (b) buy bindings and leave facileies ldie, of (c) buy bindings and mate ancther product. Winter Sports manufactures snowboards. Its cost of making 1,900 bindings is as follows: (Click the icon to view the costs.) Suppose Lancaster will sell bindings to Winter Sports for $14 cach. Water Sports would pay $1 per unit to transport the bindings to its manutacfuring plant, where it would add its own logo at a cost of $0.60 per binding. Read the requirements. Whether Winter Sports should make or buy the bindings. (Only enter the net relevant costs. For the Diflerence column, use a minus sign or parentheses ony when the cost of outsourcing exceeds the cost of making the bindings in-house.)
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