P25-25A (similar to) Question Help Cool Boards manufactures snowboards. Its cost of making 1,800 bindings is as follows: (Click the icon to view the costs.) Suppose Topnotch will sell bindings to Cool Boards for $14 each. Cool Boards 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 2. The facilities freed by purchasing bindings from Topnotch can be used to manufacture another product that will contribute $2,800 to profit. Tolal fixed costs will be the same as if Cool Boards had produced the bindings. Show which alternative makes the best use of Cool Boards' facilities. (Only enter the net relevant costs. Enter all costs as positive values. Use a minus signor Darentheses for decreases to net costa 1 A Data Table Outsource Bindings Facilities Make New Make Bindings Idle Product Direct materials $ 17,600 3,400 Direct labor Variable overhead Binding costs Variable Costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Topnotch Transportation Logo 2,040 6,700 Fixed overhead $ 29,740 Total manufacturing costs for 1,800 bindings Requirements Expected profit from new product Expected net cost of obtaining 1,800 bindings Enter any number in the edit fields and then click Check Answer. 1. Cool Boards' accountants predict that purchasing the bindings from Topnotch will enable the company to avoid $2,300 of fixed overhead. Prepare an analysis to show whether Cool Boards 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 $2,800 to profit. Total fixed costs will be the same as if Cool Boards had produced the bindings. Show which alternative makes the best use of Cool Boards' facilities: (a) make bindings. (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. ? 1 part Clear All remaining