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Mountain Fun manufactures snowboards. Its cost of making 1,850 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will
Mountain Fun manufactures snowboards. Its cost of making 1,850 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell 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. Mountain Fun Outsourcing Decision Make Buy Cost to Make Minus Cost to Buy Binding Bindings - X More Info Total cost: Direct materials Direct labor Direct materials Variable overhead Direct labor Fixed overhead Purchase price from outside supplier Variable manufacturing overhead ..... 17,750 3,400 2,355 6,650 30,155 UV ITIC U . . . . . . . . . . . . . . . . Fixed manufacturing overhead... Ill a u . . . . . . Transportation . . . . . . . . . . . . . . Total manufacturing costs $ Logo ...... 16.30 Total cost of 1,850 bindings Cost per pair ($30,155 / 1,850) ... Decision: Print Done Best Use of Facilities Analysis Buy Bindings Make Leave Make Another Bindings Facilities Idle Product More Info Direct materials Direct labor Variable overhead Direct materials ..... $ DILECLICNOI Direct labor ........ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fixed overhead Purchase price from outside supplier Transportation 17,750 3,400 2,355 6,650 Variable manufacturing overhead ....... Fixed manufacturing overhead. erhead.................. Logo Total manufacturing costs $ 30,155 Expected profit from other product $ 16.30 Cost per pair ($30,155 / 1,850) .. Expected net cost Decision: Print Print Done Done Enter any number in the edit fields and then continue to the next
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