Outdoor Life manufactures snowboards. Its cost of making 2,000 bindings is as follows: (Click the icon to view the costs.) Suppose Topnotch will sell bindings to Outdoor Life for $14 each. Outdoor Life would pay $1 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.70 per binding. Read the requirements. Requirement 1. Outdoor Life's accountants predict that purchasing the bindings from Topnotch 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.) Binding costs Variable costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Topnotch Transportation Logo Total differential cost of 2,000 bindings ta table Direct materials Direct labor Variable overhead Total manufacturing costs for 2,000 Fixed overhead bindings Print Done Make Bindings Outsource Bindings Difference (Make-Outsource) 17,580 3,000 2,060 7,000 $ 29,640 Requirements 1. Outdoor Life's accountants predict that purchasing the bindings from Topnotch 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 Topnotch can be used to manufacture another product that will contribute $3,400 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. Print Done