Mountain Fun manufactures snowboards. Its cost of making 1,800 bindings is as follows: (Click the icon to view the costs.) Suppose Livingston will sell bindings to Mountain Fun for $13 each Mountain Fun would pay $1 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.50 per binding Read the requirements Requirement 1. Mountain Fun's accountants predict that purchasing the bindings from Livingston will enable the company to avoid $2,200 of fixed overhead. Prepare an analysis to show whether Mountain Fun should make or buy the bindings. O parentheses only when the cost of outsourcing exceeds the cost of making the bindings in-house.) Make Outsource Bindings Difference (Make-Outsource) Binding costs Bindings Variable costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Livingston Transportation Logo Total differential cost of 1,800 bindings Requirements i Data Table $ Direct materials Direct labor 1. Mountain Fun's accountants predict that purchasing the bindings from Livingston will enable the company to avoid $2,200 of fixed overhead. Prepare an analysis to show whether Mountain Fun should make or buy the bindings 2. The facilities freed by purchasing bindings from Livingston can be used to manufacture another product that will contribute $2,600 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. 17,540 2,700 2,060 6,400 Variable overhead Fixed overhead $ 28,700 Total manufacturing costs for 1.800 bindings Print / Done | Print Done