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Outdoor Fun manufactures snowboards. Its cost of making 26,200 bindings is as follows: (Click the icon to view the costs.) cost of $0.20 per binding.
Outdoor Fun manufactures snowboards. Its cost of making 26,200 bindings is as follows: (Click the icon to view the costs.) cost of $0.20 per binding. Read the requirements. minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy.) Decision: Outdoor Fun manufactures snowboards. Its cost of making 26,200 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Outdoor Fun for $17 each. Outdoor Fun will pay $1.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo cost of $0.20 per binding. Read the 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 $3,100 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. (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.) Data table
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