i Data Table door Fun manufa (Click the icon to opose an outside bindings to its ma ad the requiremer Direct materials $ 100 per unit to 18,500 2,900 Direct labor Variable manufacturing overhead 1,285 7,100 Fixed manufacturing overhead equirement 1. Out mpany to avoid $2 ndings. (Enter a "o earest whole dollar. $ 29,785 Total manufacturing costs Cost per pair ($29,785 / 1,850) pplier will enabl uld make or buy Jur final answers ke exceeds the $ 16.10 y.) Incremental Print Done Outsourcing Varia Plus Requirements - X Total Decis Reqy prode Show facilid amoy 1. Outdoor Fun's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,300 of fixed overhead. Prepare an analysis to show whether Outdoor Fun 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 $2,800 to profit. Total fixed costs will be the same as if Outdoor Fun had produced the bindings. Show which alternative makes the best use of Outdoor Fun'ss facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. hothe bdings ye Print Done Enter Read the requirements. Requirement 1. Outdoor Fun's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,300 of fixed overhead. Prepare an analysis to show whether Outdoor Fun should make or buy the bindings. (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy.) Incremental Analysis Make Buy (Outsource) Outsourcing Decision Bindings Bindings Difference Variable Costs Plus: Fixed Costs Total cost of 1,850 bindings Decision: Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $2,800 to profit. Total fixed costs will be the same as it Outdoor Fun had produced the bindings. Show which alternative makes the best use of Outdoor Fun'ss facilities: (a) make bindings. (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. (Enter a "O" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar.) Buy (Outsource) Bindings Incremental Analysis (a) Make (b) Leave (c) Make Enter any number in the edit fields and then continue to the next question tal cost of 1,850 bindings decision: Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $2,800 to profit. Total fixed costs will be the same as if Outdoor Fun had produced the bindings. Show which alternative makes the best use of Outdoor Fun'ss facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar.) (a) Make Buy (Outsource) Bindings (b) Leave (c) Make Facilities Idle Another Product Binding Incremental Analysis Outsourcing Decision Variable Costs Plus: Fixed Costs Total cost of 1,850 bindings Less: Profit from another product Net cost Decision: Enter any number in the edit fields and then continue to the next question. Outdoor Fun manufactures snowboards. Its cost of making 1,850 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Outdoor Fun for $16 each. Outdoor Fun will pay $2.00 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. Read the requirements. Requirement 1. Outdoor Fun's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,300 of fixed overhead. Prepare an analysis to show whether Outdoor Fun should make or buy the bindings. (Enter a "O" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearbst whole dollar. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy.) Incremental Analysis Make Buy (Outsource) Outsourcing Decision Bindings Bindings Difference Variable Costs Plus: Fixed Costs Total cost of 1,850 bindings Decision: Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $2,800 to profit. Total fixed costs will be the same as if Outdoor Fun had produced the bindings. Show which alternative makes the best use of Outdoor Fun'ss facilities: (a) make bindings. (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar) Buy (Outsource) Bindings Enter any number in the edit fields and then continue to the next
