Mountain Fun manufactures snowboards. Its cost of making 1,900 bindings is as follows: (Click the icon to view the costs.) Suppose Hemingway will sell bindings to Mountain Fun for $15 each. Mountain Fun would pay $2 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 Hemingway 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. (Only enter the net relevant costs or parentheses only when the cost of outsourcing exceeds the cost of making the bindings in-house.) Make Bindings Outsource Bindings Difference (Make-Outsource) Binding costs Variable costs: Data Table Direct materials Direct labor $ Variable overhead Direct materials Direct labor Variable overhead 17,570 2,900 2,080 7,100 Fixed costs Purchase price from Hemingway Transportation Fixed overhead 29,650 Total manufacturing costs for 1,900 bindings Logo Total differential cost of 1,900 bindings Print Done Should Mountain Fun make or buy the bindings? Decision: Requirement 2. The facilities freed by purchasing bindings from Hemingway 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. (Onl net relevant costs. Enter all costs as positive values. Use a minus sign or parentheses for decreases to net costs.) Make Bindings Outsource Bindings Facilities Make New Idle Product Binding costs Variable Costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Hemingway Transportation Logo Expected profit from new product Expected net cost of obtaining 1,900 bindings Which alternative makes the best use of Mountain Fun's facilities? Decision