Homework X-Perience manufactures snowboards. Its cost of making 2,100 bindings is as follows: (Click the icon to view the costs.) Suppose Hemingway will sell bindings to X-Perience for $12 each. X-Perience would pay $3 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.40 per binding. Read the requirements Requirement 1. X-Perience's accountants predict that purchasing the bindings from Hemingway will enable the company to avoid $1,800 of fixed overhead. Prepare an analysis to show whether X-Perience 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 Bindings Outsource Bindings Difference (Make-Outsource) Binding costs Variable costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Hemingway Transportation Logo Total differential cost of 2,100 bindings Should X-Perience make or buy the bindings? Decision: Requirement 2. The facilities freed by purchasing bindings from Hemingway can be used to manufacture another product that will contribute $2,900 to profit. Total fixed costs will be the same as if X-Perience had produced the enthantom Valennn'nin Intim mat Enter any number in the edit fields and then continue to the X-Perience manufactures snowboards. Its cost of making 2,100 bindings is as follows: (Click the icon to view the costs.) Suppose Hemingway will sell bindings to X-Perience for $12 each. X-Perience would pay $3 per unit to transpo bindings to its manufacturing plant, where it would add its own logo at a cost of $0.40 per binding. Read the requirements Requirement 2. The facilities freed by purchasing bindings from Hemingway can be used to manufacture another product that will contribute $2,900 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. (Only enter the net relevant costs. Enter all costs as positive values. Use a minus sign or parentheses for decreases to net costs.) Make Outsource Bindings Facilities Make New Idle Product Bindings Binding costs Variable Costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Hemingway Transportation Logo Expected profit from new product Expected net cost of obtaining 2,100 bindings Which alternative makes the best use of X-Perience's facilities? Decision: Enter any number in the edit fields and then continue to the next question. c bi Data Table Direct materials $ 17,550 Direct labor 3,100 Variable overhead 2,110 7,100 Fixed overhead Total manufacturing costs for 2,100 bindings $ 29,860 -il Print id Done rofit from new product
