Mountain Sports manufactures snowboards. Its cost of making 26,200 bindings is as follows: EB (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Mountain Sports for $13 each. Mountain Sports will pay $1.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.70 per binding. Read the requirements, Requirement 1. Mountain Sports' accountants predict that purchasing the bindings from the outside supplier willl enable the company to avoid $1,900 of fixed overhead. Prepare an analysis to show whether Mountain Sports 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 Buy (Outsource) Make Bindings Outsourcing Decision Bindings Difference Variable Costs 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 $3,500 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'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 (a) Make (b) Leave (c) Make Outsourcing Decision Binding Facilities Idle Another Product -X Data Table Variable Costs Plus: Fixed Costs Total cost of 26,200 bindings Direct materials 21,000 Less: Profit from another product Direct labor 86,400 Net cost Variable manufacturing overhead 42,000 86,400 Decision: Fixed manufacturing overhead. S 235,800 Total manufacturing costs Cost per pair ($235,800/ 26,200) ... . . . .. $ 9.00 Print Done Enter any number in the edit fields and then continue to the next