question 11 point(s) possible Outdoor Life manufactures snowboards. Its cost of making 20,000 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Outdoor Life for $14 each. Outdoor Life will pay $3.00 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. Submit test Requirement 1. Outdoor Life's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $1,800 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 dollar. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy.) Incremental Analysis Outsourcing Decision Make Bindings Buy (Outsource) Bindings Difference Variable Costs Plus: Fixed Costs Total cost of 20,000 bindings Decision: Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3,400 to profit. Total fixed costs will be the same as if Outdoor Life had produced the bindings. Show which alternative makes the best use of Outdoor Life'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 dollar.) Incremental Analysis (a) Make Outsourcing Decision Binding Buy (Outsource) Bindings (b) Leave (c) Make Facilities Idle Another Product Data table - X Variable Costs Plus: Fixed Costs Total cost of 20,000 bindings Less: Profit from another product Net cost Decision: Direct materials. $ 20,000 Direct labor 80,000 Variable manufacturing overhead 40,000 80,000 Fixed manufacturing overhead $ 220,000 Total manufacturing costs Cost per pair ($220,000 + 20,000) $ 11.00 Print Done