Mountain Fun manufactures snowboards, its cost of making 1,000 bindings is as follows Click the icon to view the costs) Suppote an outside supplier wil soll bindings to Mountain Fun for $18 each Mountain Fun will pay $1.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0 20 per binding Read the requirements Data Table Direct materials ...... $ 17,500 Direct labor.... 3,000 Variable manufacturing overhead ..... 3,230 7,050 Fixed manufacturing overhead $ 30,780 Total manufacturing costs 16.20 ....$ Cost per pair ($30,780 - 1,900) . Print Done 1. Mountain Fun's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,200 of fixed overhead. Prepare an analysis to show whether the company should make or buy the bindings 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3,300 to profit. Total fixed costs will be the same as if Mountain Fun had produced the bindings. Show which alternative makes the best use of Mountain Fun's facilities: (a) make bindings. (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. Print Done Requirement 1. Mountain Fun's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,200 of fixed overhead. Prepare an analysis to show whether the company should make or buy the bindings. (Enter a "o" for any zero balances Round any per unit amounts to the nearest cent and your faners to the neared whole dollar Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy) Make Bindings Buy (Outsource) Bindings Difference Incremental Analysis Outsourcing Decision Variable costs Plus: Fixed Costs Total cost of 1,900 bindinge Decision Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3.300 to profit. Total fixed costs will be the same as if Mountain Fun had produced the bindings. Show which alternative makes the best use of Mountain Fun's facilities: (a) make bindings. (b) buy bindings and leave facilities ide, of (c) buy bindings and make another product (Enter a "O" for any zero balances Round any per unit amounts to the nearest cont and your final answers to the nearest whicle dolar) Buy (Outsource) Bindings Incremental Analysis (a) Make (b) Leave (c) Make Outsourcing Decision Binding Facilities die Another Product Variable Costs Plus: Fixed Costs Total cost of 1,900 bindings Less: Profit from another product Less: Profit from another product Net cost Decision