Outdoor Life manufactures snowboards. Its cost of making 2,000 bindings is as folow (Click the icon to view the costs) Suppose Hemingway will sell bindings to Outdoor Lito for $16 each. Outdoor Lite would pay $2 per unit to transport the bindings to de manufacturing plant, where I would need is own logo at a cost of $0.60 per binding Read the requirements Requirement 1. Outdoor Life's secountants predict the purchasing the bindings from Hemingway will enable the company to avoid 2.200 of freedovertread. Prepare an walysis 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) Outsource Difference Binding costs Bindings Bindings (Make-Outsource) Variable costs: Direct materials Director Variable overhead Fixed costs Purchase price from Hemingway Transportation Logo Total differential cost of 2.000 bindings Should Outdoor Lemake or buy the bindings? Decision Requirement. The facilities red by purchasing tindings from Hemingway can be used to make another that will be 1.000 prodowe which entive makes the best use of door testes con enter the nervous racovala mo Outsource Bindings Enter any number in the edit fields and then continue to the next question Save for Later MacBook Air 9 8 % 5 # 3 6 7 4 o 12,000 bindings ses for !! (Click the icon to view the costs) Suppose Hemingway will sell bindings to Outdoor Life for $16 each Outdoor Life would pay $2 per Read the requirements t to transport the bindings to de mantencturing plant, where it would be to own logo tacout of 80.60 per binding Decision Requirement 2. The facilities freed by purchasing bindings from Hemingway can be used to manufacture another product that will contribute $3,000 to profit . Total find cons will be the same as Outdoor Lite had produced the bindings. Show which alternative makes the best use of Outdoor Life's facilities. (Only enter the net relevant costs. Enter al costs as positive values. Une ainus sign or parentheses for decremes to net.com Outsource Bindings Ide Product Binding costs Bindings Variable costs: Direct materials Direct labor Variable overhead Faced costs Purchase price from Hemingway Transportation Logo Expected profit from new product Expected cost of obtaining 2,000 bindings Which temative makes the best use of Outdoor Life's facilities? Decision Enter any number in the edit fields and then continue to the next question save for MacBook Air 7 NOV % 5 # 3 4 T Y 70 w E G . F 2 3 of 3 is as follows: oor Life would pay $2 per unit to transport the bindings to its manufacturing plant, where it would add its own logo away can be used to manufacture another product that will contribute $3,000 to profit. Total fixed costs will be the sam Inter the na es for decreases to neto O Data Table Facilit Idid Direct materials $ 17,550 Direct labor 2,600 Variable overhead 2.100 6,400 Fixed overhead $ 28,650 Total manufacturing costs for 2,000 bindings Print Done next question. MacBook Air
