I need help with a case study. See attached document. The excel spreadsheet template is included. There are 2 problems and please complete the excel spreadsheet.

***PLEASE INCLUDE ALL ANSWERS AND EQUATIONS ON THE ATTACHED DOCUMENT.

THANK YOU

Sportway Corporation Contribution margin calculations Selling price Less: Material Diirect labor Manufacturing overhead Selling and administrative costs Total Costs Contribution margin Purchase Manufacture Manufacture Tackle boxes Tackle boxes Skateboards $ 86.00 $ 86.00 $ 45.00 $ $ $ $ 68.00 $ $ $ 4.00 $ 72.00 $ 14.00 $ 17.00 18.75 6.25 11.00 53.00 33.00 $ $ $ $ $ $ 12.50 7.50 2.50 3.00 25.50 19.50 Tackle boxes: Direct-labor hours $18.75 $15.00 = 1.25 hours Overhead per direct-labor hour $12.50 1.25 = $10.00 Capacity 8,000 boxes 1.25 = 10,000 hours Total overhead 10,000 hours $10 per hour = $100,000 Total variable overhead $100,000 - $50,000 = $50,000 Variable overhead per hour $50,000 10,000 = $5.00 Variable overhead per box $5.00 1.25 = $6.25 Direct-labor hours $7.50 $15.00 = .5 hours Variable overhead $5.00 .5 = $2.50 Skateboards: In calculating the contribution margin, $6.00 of fixed overhead cost per unit for distribution must be deducted from the selling and administrative cost. skateboard idea that I think will demonstrate the line's potential.\" Sportway is a wholesale distributor supplying a wide range of moderately priced sports equipment to large chain stores. About the products are manufactured by Sportway. The company has a Plastics Department that is currently manufacturing molded fi full use of its direct-labor capacity at available work stations. The selling price and costs associated with Sportway's tackle boxe Selling price per box ......................................................................................... Costs per box: Molded plastic ................................................................................ $ 8.00 Hinges, latches, handle.....................................................................9.00 Direct labor ($15.00 per hour...........................................................18.75 Manufacturing Overhead ........................................................ 12.50 Selling and administrative cost .................................... 17.00 Profit per box ....................................................................... $86.00 65.25 $20.75 Because Sportway's sales manager believes the firm could sell 12,000 tackle boxes if it had sufficient manufacturing capacity, t Products, a steady supplier of quality products, would be able to provide up to 9,000 tackle boxes per year at a price of $68.00 Bo Vonderweidt, Sportway's production manager, has come to the conclusion that the company could make better use of its P an expanding market for skateboards and a need for additional suppliers. Vonderweidt believes that Sportway could expect to After his lunch with the company president, Vonderweidt worked out the following estimates with the assistant controller. Selling price per skateboard...................................................... Costs per skateboard: Molded plastic .........................................................................$5.50 Wheels, hardware ......................................................................7.00 Direct labor ($15.00 per hour) ...................................................7.50 Manufacturing overhead ............................................................5.00 Selling and administrative cost .................................................9.00 Profit per skateboard ............................................................... $45.00 34.00 $11.00 In the Plastics Department, Sportway uses direct-labor hours as the application base for manufacturing overhead. Included in t overhead that has been allocated to the Plastics Department. For each unit of product that Sportway sells, regardless of wheth fixed overhead cost per unit for distribution that is included in the selling and administrative cost for all products. Total selling a Required: In order to maximize the company's profitability, prepare an analysis that will show which product or products Sportway Cor 1. First determine which of Sportway's options makes the best use of its scarce resources. How many skateboards and tackle 2. Calculate the improvement in Sportway's total contribution margin if it adopts the optimal strategy rather than continuing This is a make vs. buy decision. We are looking for the optimal use of our scarce resources - direct labor. We want to meet demand of tackle boxes and skat It seems to me; we need 2 scenarios: (1) The best we can do without outsourcing (2) The best we can do with adding outsourcing We select the most profitable option #1 or #2