Outdoor Life manufactures snowboards. Its cost of making 1800 bindings as follows:

Direct materials-$ 17510

Direct labor-$ 2600

Variable overhead-$ 2030

Fixed overhead-$ 6500

Total manufacturing costs for 1800 bindings-$ 28640

- X iRequirements Outdoor Life's accountants predict that purchasing the bindings from Lewis will enable the company to avoid $1,900 of fixed overhead. Prepare an analysis to show whether Outdoor Life should make or buy the bindings. 1. The facilities freed by purchasing bindings from Lewis can be used to manufacture another product that will contribute $2,700 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 2. Print Done