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Data table Direct materials $ 17,550 Direct labor 3,000 Variable overhead 2,120 6,700 Fixed overhead Total manufacturing costs for 1,800 bindings $ 29,370 Requirements 1. Winter Sports' accountants predict that purchasing the bindings from Lewis will enable the company to avoid $1,800 of fixed overhead. Prepare an analysis to show whether Winter Sports should make or buy the bindings. 2. The facilities freed by purchasing bindings from Lewis can be used to manufacture another product that will contribute $3,300 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 product. Winter Sports manufactures snowboards. Its cost of making 1,800 bindings is as follows: Cack the icon to view the costs) Sophora Lowowilot biodings to Winter Sports for $16 each. Winter Sports would pay $2 per unit to transport the bindings to to manufacturing plant, where it would add its own logo at cost of 50 40 per dinding Read the requirements Requirement 1 Winter Sports accountants predict that purchasing the bindings from Lewis will enable the company to avoid 1.800 of feed overhead. Prepare an analysis to show Whether Winter Sports should make or buy the bindings (Only entertentolevant costs. For the Derence columnes minus signor parentheses only when the cost of outsourcing ceeds the cost of making the bindings in-house) Requirement 1, Winter Sports' accountants predict that purchasing the bindings from Lewis will enable the company to avoid $1.800 of fixed overhead Proparea is to show whether Winter Sports should make or buy the bindings. (Only enter the net relevant costs. For the Derence columns a minus sign or parentheses only when the cost of outsourcing needs the cost of making the bindings in-house) Make Outsource Difference Binding costs Bindings Bindings Make-Outsource) Variable costs Direct materials Direct labor Variable overhead Fixed costs Purchase price from Lewis Transportation Logo Total differential cost of 1,800 bindings Should Winter Sports make or buy the bindings? Decision Make the bindings Requirement 2. The facilities freed by purchasing bindings from Lewis can be used to manufacture another product that will contributes 53.300 to profit. Totalfixed costs will be the same as Winter Sports had produced the binding. Show which alternative makes the best use of Winter Sports facilities (Only enter the pot relevant costs. Enter all costs as positive values to a minus signor parentheses for decreases to be costs Outsource Bindings Facilities Make New Idia Product Make Binding costs Bindings Vintable Costa Direct materials Direct labor Variable overhead Fixed costs Purchase price from Lewis Transportation Logo Expected profit from new product Expected not cost of obtaining 1.800 bindings Which alternative makes the best use of Winter Sport facilities? Decision Make the bindings