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 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. (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.) Make Bindings Outsource Bindings Difference (Make-Outsource) i Data Table $ Binding costs Variable costs: Direct materials Direct labor Variable overhead Fixed costs Direct materials Direct labor 17,600 3,400 2,040 6,700 Variable overhead Fixed overhead $ 29,740 Total manufacturing costs for 1,800 bindings Purchase price from Topnotch Transportation Logo Requirements Total differential cost of 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. 2 3 parts remaining wer