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Olup 20TIUMework Save Score: 0.5 of 1 pt 4 of 4 (4 complete) HW Score: 87.5%, 3.5 of 4 pts P25-25A (similar to) E Question
Olup 20TIUMework Save Score: 0.5 of 1 pt 4 of 4 (4 complete) HW Score: 87.5%, 3.5 of 4 pts P25-25A (similar to) E Question Help Wild Ride manufactures snowboards. Its cost of making 2,100 bindings is as follows: !!! (Click the icon to view the costs.) Suppose Hemingway will sell bindings to Wild Ride for $12 each. Wild Ride would pay $3 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.70 per binding. Read the requirements Total differential cost of 2,100 bindings 24,420 32.70 > 10.55) Should Wild Ride make or buy the bindings? Decision: Make the bindings. Requirement 2. The facilities freed by purchasing bindings from Hemingway can be used to manufacture another product that will contribute $3,100 to profit. Total fixed costs will be the same as if Wild Ride had produced the bindings. Show which alternative makes the best use of Wild Ride's facilities. (Only enter the net relevant costs. Enter all costs as positive values. Use a minus sign or parentheses for decreases to net.costs.) Make Bindings Outsource Bindings Facilities Make New idle Product i Data Table Binding costs Variable Costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Hemingway Transportation $ Direct materials Direct labor Variable overhead 17,530 3,000 2,090 6,400 Fixed overhead $ 29,020 Total manufacturing costs for 2,100 bindings Logo Expected profit from new product Print Done Expected net cost of obtaining 2,100 bindings Enter any number in the edit fields and then click Check Answer. Clear AB Check Answer part remaining
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