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Mountain Fun manufactures snowboards. Its cost of making 26,200 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will
Mountain Fun manufactures snowboards. Its cost of making 26,200 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell hindings to Mountain Fun for $15 each Mountain Fun will pp Read the requirements. Data Table .per binding 0.60 i Requirements Requirement 1. Mountain make or buy the bindings. cost to make exceeds the company should nce column when the Direct materials $ 21,000 Incremental Ana Outsourcing Ded 1. Mountain Fun's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $1,800 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 $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. Direct labor. 86,400 Variable manufacturing overhead. 42,000 86,400 Fixed manufacturing overhead $ 235,800 Total manufacturing costs Cost per pair ($235,800 = 26,200) ..... $ 9.00 Variable Costs Plus: Fixed Costs Total cost of 26,200 bind Decision: Print Done Print Done Requirement 2. The facili ed 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 me te vor Oro IT rec. (a) make bindings, (b) buy bindings and leave facilities idle, or (C) buy bindings and make another product. (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar.) Enter any number in the edit fields and then continue to the next question. Mountain Fun manufactures snowboards. Its cost of making 26,200 bindings is as follows: Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Mountain Fun for $15 each. Mountain Fun will pay $2.00 per unit to transport the bindings to its manufacturing plant, where Read the requirements will add its own logo at a cost of $0.60 per binding. Requirement 1. Mountain Fun's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $1,800 of fixed overhead. Prepare an analysis to show whether the company should make or buy the bindings. (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy.) Make Incremental Analysis Outsourcing Decision Variable Costs Buy (Outsource) Bindings Bindings Difference Plus: Fixed Costs Total cost of 26,200 bindings Decision: Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute 52,600 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. (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar.) Enter any number in the edit fields and then continue to the next question. Mountain Fun manufactures snowboards. Its cost of making 26,200 bindings is as follows: E: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Mountain Fun for $15 each. Mountain Fun will pay $2.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.60 per binding. Read the requirements Requirement 1. Mountain Fun's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $1,800 of fixed overhead. Prepare an analysis to show whether the company should make or buy the bindings. (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy.) Incremental Analysis Make Buy (Outsource) Outsourcing Decision Bindings Bindings Difference Variable Costs Plus: Fixed Costs Total cost of 26,200 bindings Decision: Requirem purchasing bindings from the outside supplier can be used to manufacture another product that will contribute 52,600 to profit. Total fixed costs will be the same as if Mountain Fun had produced Buy the bindings ernative 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. (Enter a "0" for any zero balances to the nearest cent and your final answers to the nearest whole dollar.) Make the bindings Enter any number in the eait Tields and then continue to the next question. Mountain Fun manufactures snowboards. Its cost of making 26,200 bindings is as follows: E: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Mountain Fun for $15 each. Mountain Fun will pay $2.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.60 per binding. Read the requirements. Requirement 2. The facilities freed by purchasing bindings from the outside supplier 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. (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar.) Buy (Outsource) Bindings Incremental Analysis (b) Leave (c) Make Outsourcing Decision Binding Facilities Idle Another Product Variable Costs (a) Make Plus: Fixed Costs Total cost of 26,200 bindings Less: Profit from another product Net cost Decision: Enter any number in the edit fields and then continue to the next question. Mountain Fun manufactures snowboards. Its cost of making 26,200 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Mountain Fun for $15 each. Mountain Fun will pay $2.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.60 per binding. Read the requirements Requirement z. me acues Tree by purchasing bindings Trom the outside supplier can be used to manuaciure amourer prouuc at WIII Corindule 32, ou to prom. Total Txeu CuSIS WII DE ne same as Ti mourilan run nau 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. (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar.) Buy (Outsource) Bindings Incremental Analysis (b) Leave Outsourcing Decision Binding Facilities Idle Another Product Variable Costs (a) Make (c) Make Plus: Fixe Total cost Less: Pro Buy the bindings and leave the facilities idle Continue to make the bindings. Buy the bindings and use the facilities to make another product. Net cost Decision: Enter any number in the edit fields and then continue to the next
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