Homework: Chapter 25 Homework Save Score: 0 of 1 pt 3 of 3 (2 complete) HW Score: 32.05%, 0.96 of 3 pts Winter Sports manufactures snowboards. Its cost of making 2,000 bindings is as follows: (Click the icon to view the costs.) Suppose Witherspoon will sell bindings to Winter Sports for $15 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 $0.60 per binding. Read the requirements Requirement 1. Winter Sports' accountants predict that purchasing the bindings from Witherspoon will enable the company to avoid $2,100 of fixed 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 outsourcing exceeds the cost of making the bindings in-house.) Make Outsource Difference Binding costs Data Table Bindings Bindings (Make-Outsource) Variable costs: Direct materials Direct materials $ 17,560 Direct labor Direct labor 2.600 Variable overhead Variable overhead 2.110 Fixed costs Fixed averhead 6,500 Purchase price from Witherspoon $ 28.770 Transportation Total manufacturing costs for 2,000 bindings Logo Requirements Total differential cost of 2,000 bindings Enter any number in the edit fields and then click Check Answer. 3 parts 1. Winter Sports' accountants predict that purchasing the bindings from Witherspoon will enable the company to avoid $2,100 of fixed overhead. Prepare an analysis to show whether Winter Sports should make or buy the bindings. 2. The facilities freed by purchasing bindings from Witherspoon can be used to manufacture another product that will contribute $3,000 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, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. remaining