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Please Help Snowy Mountain manufactures snowboards. Its cost of making 19,000 bindings is as follows: (Click the icon to view the costs.) Suppose an outside
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Snowy Mountain manufactures snowboards. Its cost of making 19,000 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Snowy Mountain for $15 each. Snowy Mountain 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 $0.50 per binding. Read the requirements. Requirement 1. Snowy Mountain's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $1,900 of fixed overhead. Prepare an analysis to show whether Snowy Mountain 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.) Data table h. Snowy Mountain will pay $2.00 per unit bgo at a cost of $0.50 per binding. pindings from the outside supplier will to show whether Snowy Mountain should unit amounts to the nearest cent and your the Difference column when the cost to Requirements will pay $2.00 per unit per binding. 1. Snowy Mountain's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $1,900 of fixed overhead. Prepare an analysis to show whether Snowy Mountain 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 $3,100 to profit. Total fixed costs will be the same as if Snowy Mountain had produced the bindings. Show which alternative makes the best use of Snowy Mountain'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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