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Mountain Sports manufactures snowboards. Its cost of making 1,850 bindings is as follows HClick the icen to vew the costt) Suppowe an outside supplior will

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Mountain Sports manufactures snowboards. Its cost of making 1,850 bindings is as follows HClick the icen to vew the costt) Suppowe an outside supplior will sell bindings to Mountain Sports for \$15 each Mountain Sports will pay \$3 00 per unit to transport the bindings to its manulacturing plant, where at will add its own logo at a cost of 5020 per binding Read the requirements Mourtain Sports mariufactures smowboards its cost of making 1,850 bindings is as follows: Will add its oun logo at a cout of $020 per binding Pread the ceavitertients Requirement 1. Maritain Sports accountants predict that purchasing the bedings from the outside supplier will enable the company to avold 51.500 of foed overtiesd Pitipary Data table 1. Mountain Sports' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $1,900 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 $2,700 to profit. Total fixed costs will be the same as if Mountain Sports had produced the bindings. Show which alternative makes the best use of Mountain Sports' facilities. (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product

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