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PLEASE ANSWER ALL REQUIREMENTS Winter Sports manufactures snowboards. Its cost of making 1,890 bindings is as follows: (Click the icon to view the costs.) of
PLEASE ANSWER ALL REQUIREMENTS
Winter Sports manufactures snowboards. Its cost of making 1,890 bindings is as follows: (Click the icon to view the costs.) of $0.70 per binding. Read the requirements. parentheses in the Difference column when the cost to make exceeds the cost to buy.) Requirements Data table 1. Winter Sports' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,400 of fixed overhead. Prepare an analysis to show whether the company should make or buy the bindings. 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3,000 to profit. Total fixed costs will be the same as if Winter Sports had produced the bindings. Show which alternative makes the best use of Winter Sports' facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another productStep by Step Solution
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