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Please help with requirement 2 v,Mld Ride manufactures snowboards. Its cost of making 2,000 bindings is as follows: (Click the icon to view the costs.)
Please help with requirement
v,Mld Ride manufactures snowboards. Its cost of making 2,000 bindings is as follows: (Click the icon to view the costs.) Suppose Witherspoon will sell bindings to Wild Ride for S14 each Wild Ride would pay Sl per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of SO 50 per binding. Read the cegu&ents. Fixed costs Purchase price from Witherspoon Transportation Logo Total differential cost of 2,000 bindings Should Wild Ride make or buy the bindings? Decision: Make the bindings. Igoo Igoo (28,000) (2000) Requirement 2. The facilities freed by purchasing bindings from Witherspoon can be used to manufacture another productthat will contribute SS, 100 to profit Total fixed costs will be the same as IfWild Ride had produced the bindings Show which alternative makes the best use ofWiId Ride's facilities. (Only enter the net relevant costs. Enter all costs as positive values Use a minus sign or parentheses for decreases to net costs) Outsource Bindings Facilities Bindings Make New Product Binding costs Variable Costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Witherspoon Transportation Logo Expected profit from new product Expected net cost of obtaining 2,000 bindings V,nmch alternative makes the best use of Wild Ride's facilities? Decision: Data table Direct materials Direct labor Variable overhead Fixed overhead Total manufacturing costs for 2,000 bindings s 17,600 2,090 7,200 30,390 Requirements Wild Ride's accountants predict that purchasing the bindings from Witherspoon will enable the company to avoid Sl , goo of fixed overhead Prepare an analysis to show whether Vhhld Ride should make or buy the bindings. . The facilities freed by purchasing bindings from Witherspoon can be used to manufacture another product that will contribute S3, 1 00 to profit. Total fixed costs will be the same as if Wild Ride had produced the bindings. Show which alternative makes the Oest use of Wild Ride's facilities: (e) make bindings, (b) buy bindings and leave facilities idle, or (c) buy print Done bindings end make another product print Done
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