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P25-25A (similar to) Question Help O Wild Ride manufactures snowboards. Its cost of making 2,100 bindings is as follows: (Click the icon to view the
P25-25A (similar to) Question Help O Wild Ride manufactures snowboards. Its cost of making 2,100 bindings is as follows: (Click the icon to view the costs.) Suppose Hemingway will sell bindings to Wild Ride for $12 each. Wild Ride would pay $2 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.40 per binding. Read the requirements, Requirement 1. Wild Ride's accountants predict that purchasing the bindings from Hemingway will enable the company to avoid $2,000 of fixed overhead. Prepare an analysis to show whether Wild Ride 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 Outsource Difference Binding costs Bindings Bindings (Make-Outsource) Data Table Variable costs: Direct materials Direct materials $ 17,500 Direct labor Direct labor 3,300 Variable overhead Variable overhead 2,100 Fixed costs 7,100 Purchase price from Hemingway Fixed overhead S 30,000 Transportation Total manufacturing costs for 2,100 bindings Logo Total differential cost of 2,100 bindings Print Done Enter any number in the edit fields and then click Check Answer. ? 3 parts Clear All Check Answer remaining
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