Question Help Outdoor Life manufactures snowboards. Its cost of making 2.100 bindings is se follows: Click the icon to view the costs Suppose Topanich will sell hindingsta Outdoor Lia for $16 each. Outdoor Life would pay $2 per un to transport the bindings to its manufacturing plant, where it would and its own logo at a cost of $0.0 per binding Read the requirementa Requirement 1. Outdoor Life's accountarile predict thal purchasing the bindings from Tognolch will enable the company to avoid $2,300 of lixed wertread. Prepare an analysis to show whether Outdoor Life should make or buy the bindings. (Only eriler the net relevaril costs. For the Difference column, use a mhus sign or parentheses only when the cost of outsourcing exceeds the coat of making the bindings in-house.) Make Outsource Bindings Difference (Make-Outsource) Bindings Dats. Table Binding costs Variable costs: Direct materials Direct labor Variable averhead Fixed costs Dinant materials Direct labor Variable overhud $ 17,511) 3.500 2,090 1,700 II Purchase price from Topnotch Transporlation Fixed overhead III Total manufacturing costs for 2.100 bindings Logo Total differential cost of 2,100 bindings Print Done Should Oudoor Lifemake or buy the bindinge? Dedalon: Requirement 2. The facilities tread by purchasing bindings from Topnotch can be used to manufacture other product that will contribute $3,000 to protin. Total fixed costs will be the same as if Outdoor Life had produced the bindings. Shaw which alternative makes the best use of Outdoor Life's facilities. (Only enter the net relevant costs. Enter al costs positive values. Use a minus sign or parentheses for decreases to netcost. Outsource Bindings Facilities Make New Make Bindings Binding costs Idile Product Variable Coets Question Help Outdoor Life manufactures snowboards. Its cost of making 2.100 bindings is a follows: Click the icon to view the most Suppose Topanich will sell hindingsta Outdoor Lia for $16 each. Outdoor Life would pay $2 per un to transport the bindings to its manufacturing plant, where it would and its own logo at a cost of $0.0 per binding Read the requirements Total differential cost of 2.100 bindings Should Outdoor Lite make or buy the bindinga? Decision: Requirement 2. The facilities freed by purchasing bindings from Topnotch can be used to ranufacture another product that will contribute $3,000 ta prof. Tocal fixed costs will be the same as if Outdoor Life had produced the bindings. Shaw which alternative makes the best use of Ouluor Life's facilities. (Orily enter the nel relevant coels. Enler al costs as positive values. Use a minus sign or parerilheses for recreases lo neces. Outsource Bindings Facilities Make New Make Bindings Idle Product Binding costs Variabia Cos Direct materials Direct labor i Data Table Varanle averhead S Fixed costs Purchase price from Topnotch Transportation Direct materials Direct labor Variable overhead 17,510 3.500 2.090 6.700 Fixed Overhead Logo S Tatal manufacturing costs for 2,100 bindings 29,900 Expected profit from new product Expected net cost of obtaining 2,100 bindings Print Done Which alternative makes the best use of Outdoor Life's facilities? Decision
