Outdoor Life manufactures snowboards. Its cost of making 1,800 bindings is as follows: E (Click the icon to view the costs.) Suppose Lewis will sell bindings to Outdoor Life for $14 each. Outdoor Life would pay $2 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.40 per binding. Read the requirements. Requirement 1. Outdoor Life's accountants predict that purchasing the bindings from Lewis will enable the company to avoid $2,200 of fixed overhead. Prepare an analysis to show whether Outdoor Life should make or buy the bindings. (Only enter the net relevant costs. For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the bindings in-house.) Make Outsource Difference Requirements Binding costs Bindings Bindings (Make-Outsource) Variable costs: Direct materials $ 17,520 $ Direct labor 2,600 17,520 2,600 2,090 Variable overhead 2,090 1. Outdoor Life's accountants predict that purchasing the bindings from Lewis will enable the company to avoid $2,200 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 Lewis can be used to manufacture another product that will contribute $3,000 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. Fixed costs 2,200 2,200 Purchase price from Lewis Transportation Data Table Logo Print Done Total differential cost of 1,800 bindings Direct materials $ 17,520 Direct labor Enter any number in the edit fields and then click Check Answer. Variable overhead 2,600 2,090 6,700 Fixed overhead parts remaining $ 28,910 Check Answer Total manufacturing costs for 1,800 bindings