Mountain Rides manufactures snowboards. Its cost of making 1,900 bindings is as follows: Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Mountain Rides for $16 each. Mountain Rides 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 $0.20 per binding Read the requirements Requirement 1. Mountain Rides' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,400 of fixed overhead. Prepare an analysis to show whether the company should make or buy the bindings. (Entera o for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar Use a minun sign or parentheses in the Diference 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 1,900 bindings Data Table 1 17.500 3.000 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs Cost per pair ($30,780 + 1,000) 3230 7.050 $ 30.780 18.20 Print Done Mountain Rides manufactures snowboardsIts cost of making 1.900 bindings is as follows Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Mountain Rides for 516 each. Mountain Rides 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 $0.20 per binding Read the requirements Requirement 1. Mountain Rides' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,400 of fixed overhead. Prepare an analysis to show whether the company should make or buy the bindings. (Enter a 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 1,000 bindings Requirements 1. Mountain Rides' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2.400 of fored 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 foxed costs will be the same as if Mountain Rides had produced the bindings. Show which alternative makes the best use of Mountain Rides facilities: (a) make bindings. (b) buy bindings and leave facilities ide, or (c) buy bindings and make another product Print Done Print Done