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Please help me solve all my requirements Mountain Fun manufactures snowboards. Its cost of making 1,850 bindings is as follows: (Click the icon to view
Please help me solve all my requirements
Mountain 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 Mountain Fun for $13 each. Mountain 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 $0.70 per binding. Read the requirements. Requirement 1. Mountain 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 the company 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 doliar. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy.) Decision: Requirement 2 . The facilities freed by purchasing bindings from the outside supplier can be used to manulacture another product that will contribute $3,300 to profit. Total fixed costs will be the same as if Mountain Fun had produced the bindings. Show which altemative makes the best use of Mountain Fun's 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 doltar.) Mountain Fun's accountants whether the company should arest whole dollar. Use a mir The facilities freed by purchas same as as idle, of hole dolla nental A ureing D sts 850 bind Data table hpany to avoid $2,300 of fixed overhea iit amounts to the nearest cent and you s the cost to buy.) juct that will contribute $3,300 to profit pake bindings, (b) st cent and your Requirements 1. Mountain 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 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 $3,300 to profit. Total fixed costs wil be the same as if Mountain Fun had produced the bindings. Show which alternative makes the best use of Mountain Fun's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product Step by Step Solution
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