Outcoar Life manufactures croatoards. Its cost af making 1900 bindings is a fas: (Cick the con to view the coats Suppose Wtherspoon will sel bindings to Outdoor Life for $6 esch Outdoor Life would say $2 per un to transport the bindings to its manufacturing pant, where it would add somn logo at a cost of 89.60 per binding Head the racuramants Requirement 1. Outdoor LHA's accountants predict that purchasing the bindings from Witherspoon will enable the company to avoid 52.000 of fixed overneed. Frepare an analyses to show whether outcoor Life should make or by the bladings Orly enter the net relevant costs. For the Difference column, use a minus sign of parentheses only when the coelof outsourcing exceeds the cost of making the binding in-house. Make Outsource Difference Binding costs Bindings Bindings (Make-Outsource) Varie A Direct materials 17550 17550 Direct labor 2700 2700 Variable overhead 2000 2030 Fixed costs 7000 7000 Purchase price from Witherspoon Transportation 1 Loga Total differential cost of 1,800 bindings Should Outdoor Life make or buy the bindings? Decision Make the bindinge. Requirement 2. The lociltiese by purchasing bindinge from Witherspoon can be used to manufacture srother product that will contribute 33,200 to proft. Total fixed costs will be the come se ir Oudoor Life had produced the bindings. Show which atemlive makes the best use of Outdoor Life's facilities. (Only enter the net relevant costs. Emerall cossus pocitive values. Live a minus signor parentheces for decreases to net costs. Outsource Bindings Make Facilities Make New Binding costs Bindings Idle Product Vanabe Costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Witherspoon Transportation Logo Expected profit from new product Expected net cost of obtaining 1.800 bindings Which ile alive as the veel use of Ouluor Life's facilities? A Requirements 1. Outdoor Life's accountants predict that purchasing the bindings from Witherspoon will enable the company to avoid $2,000 of fixed overhead. Prepare an analysis to show whether Outdoor Life should make or buy the bindings. 2. The facilities freed by purchasing bindings from Witherspoon can be used to manufacture another product that will contribute $3,200 to profit. Total fixed costs will be the same as if Outdoor Life had produced the bindings. Show which alternative makes the best use of Outdoor Life's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. Print Done Data Table produced the bi duct that will reases to net Direct materials $ 17,550 Direct labor 2,700 Variable overhead 2,030 7,000 Fixed overhead $ 29,280 Total manufacturing costs for 1,800 bindings Print Done