Outdoor Fun manufactures snowboards. Its cost of making 24,900 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Outdoor Fun for $14 each. Outdoor Fun 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 $0.50 per binding. Read the requirements. CO Requirement 1. Outdoor Fun's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,200 of fixed overhead. Prepare an analysis to show whether the company 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 Outsourcing Decision Variable Costs Plus: Fixed Costs Total cost of 24,900 bindings Requirements Make Bindings Buy (Outsource) Bindings Difference Data table Direct materials. 27,000 Direct labor... 84,000 Variable manufacturing overhead 54,000 84,000 Fixed manufacturing overhead $ 249,000 10.00 1. Outdoor Fun's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,200 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 $3,000 to profit. Total fixed costs will be the same as if Outdoor Fun had produced the bindings. Show which alternative makes the best use of Outdoor Fun's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. Total manufacturing costs. Cost per pair ($249,000 24,900) Print Done Print Done