Outdoor Life Snowboard Mfg. Inc. manufactures snowboards. Its cost of making 1,700 bindings is as follows: (Click the icon to view the costs.) Suppose Lancaster will sell bindings to Outdoor Life for $15 each. Outdoor 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 $0.30 per binding. Requirements Requirement 1. Outdoor Life's accountants predict that purchasing the bindings from Lancaster will enable the company to avoid $3,200 of fixed overhead. Prepare an analysis to show whether Outdoor Life should make or buy the bindings. (If a box is not used in the table, leave the box empty; do not enter a zero. Use a minus sign or parentheses for subtracting numbers that are typically shown enclosed in parentheses in an outsourcing analysis. All boxes in the Cost to Make Minus the Cost to Buy column should have a value entered.) Outdoor Life Snowboard Mfg. Inc. Outsourcing Analysis Make Binding Cost to Make Minus Cost to Buy Buy Bindings Total cost: Direct materials Direct labour Variable overhead Fixed overhead Purchase price from Lancaster Transportation Logo Total cost of 1,700 bindings Direct materials $ 17,270 Direct labour 2,900 Variable manufacturing overhead Fixed manufacturing overhead 2,070 6,100 $ 28,340 Total manufacturing costs $ 16.67 Cost per pair ($28,340 = 1,700)