K Mountain Fun manufactures snowboards. Its cost of making 1,900 bindings is as follows (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Mountain Funfor $1Beach Mountain Funwill pay $3.00per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.20per binding Read the requirements Requirement 1. Mountain Fun's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,000 of fixed overhead Prepare an analysis to show whether the company should make or buy the bindings (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy) Incremental Analysis Outsourcing Decision Variable Costs Plus: Fixed Costs Total cost of 1,900 bindings Make Bindings Buy (Outsource) Bindings Difference Data table Direct materials $ 17,500 Direct labor Variable manufacturing overhead Fixed manufacturing overhead 3.000 3,230 7.000 $ 30.780 Total manufacturing costs his Video Cost per pair ($30,780 +1,900) $ 16.20 - X Requirements 1. Mountain Fun's accountants predict that purchasing the bindings from the outside supplier wit enable the company to avoid $2,000 of fixed overhead Prepare an analysis to show whether the company should make or buy the bindings 2. The facilites freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $2,000 to profit Total fixed costs will be the same as Mountain Fun had produced the bindings. Show which alterative makes the best use of Mountain Fun's facilites (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product MacBook Pro X