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Mountain Fun manufactures snowboards. Its cost of making 2,000 bindings is as follows: (Click the icon to view the costs.) Read the requirements. (Only enter
Mountain Fun manufactures snowboards. Its cost of making 2,000 bindings is as follows: (Click the icon to view the costs.) Read the requirements. (Only enter the net relevant costs. For the Difference column, use a minus sign or parentheses only when the cost of Data table Requirements Should Mountain Fun make or buy the bindings? Decision: 1. Mountain Fun's accountants predict that purchasing the bindings from Lancaster will enable the company to avoid $1,900 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 Lancaster 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
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