Outdoor Life manufactures snowboards. Its cost of making 1,850 bindings is as follows: EE (click the icon to view the costs.) Suppose an outside supplier will sell bindings to Outdoor Life for $18 each. Outdoor Life will pay $1.00 per unit to transport the bindi Read the requirements. oor Life will pay $1.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $O.60 per binding Data Table Direct materials Direct labor. 3,400 2,355 6,650 $30,155 Fixed manufacturing overhead Total manufacturing costs .tit . . . . . . . .. fit. T s16.30 nothe suppli utsourd Print Done nts to the hnearest Cerntand y0al i Requirements 1.Outdoor Life's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $1,800 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 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 Life had produced the bindings. Show which alternative makes the best use of Outdoor Life'ss facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product ar Print Done Requirement 1. Outdoor Life's accountants predict that purchasing the bindings from the outside supplier will enabl bindings. (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to buy.) er will enable the oompany to avoid $1,800 of fixed overhead. Prepare an analysis to show whether Outdoor Life should make or buy the 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 Requirement 1. Outdoor Life's accountants predict that purchasing the bindings from the outside supplier will ene bindings. (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answe to buy.) Buy (Outsource) Bindings Make Incremental Analysis Outsourcing Decision Bindings Difference Variable Costs Plus: Fixed Costs Total cost of 1,850 bindings Decision: purchasing bindings from the outside supplier can be used to manufacture a Requirem Show whic Make the bindings. use of Outdoor Life'ss facilities: (a) make bindings, (b) buy bindings and lea the neares Buy the bindings. s to the nearest whole dolilar.) Buy (Outsource) Bindings Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that w the nearest cent and your final answers to the nearest whole dollar.) use of o'ss facilitios: (a) make bindings, (b) buy bindings and leave facilities idle, or (c nufacture another product that will contribute $3,100 to profit. Total fixed costs will be the same as if Outdoor Life had produced the bindings. ngs and leave facilities idle, or (c) buy bindings and make another product. (Enter a "O" for any zero balances. Round any per unit amounts to Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture Show which alternative makes the best use of Outdoor Life'ss facilitios: (a) make bindings, (b) buy bindings and le the nearest cent and your final answers to the nearest whole dollar.) Buy (Outsource) Bindings (a) Make Binding (b) Leave (c) Make Incremental Analysis Outsourcing Decision Facilities IdleAnother Product Variable Costs Plus: Fixed Costs Total cost of 1,850 bindingsL Less: Profit from another product Net cost Decision: Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another Show which alternative makes the best use of Outdoor Life'ss facilitios: (a) make bindings, (b) buy bindings and leave faci the nearest cent and your final ar Buy (Outsource) Bindings (c) Make Incremental Analysis Outsourcing Decision (a) Make Binding (b) Leave acilities l Variable Costs Plus: Fixe Total cost Buy the bindings and leave the facilities idle. Less: P Net cost Buy the bindings and use the facilities to make another product. Decision: Continue to make the bindings