Requirements 1 & 2

buestion Help Cool Boards manufactures snowboards Its cost of making 24 900 bindings is as follows (Click the icon to view the costs) Suppose an outside supplier will sell bindings to Cool Boards for $12 each Cool Boards will pay $100 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of 50 70 per binding Read the requirements Requirement 1. Cool Boards accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid 52 300 of fixed overhead Prepare an analysis to show whether the company should make or buy the bindings Enter a "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 Make Buy (Outsource) Outsourcing Decision Bindings Bindings Difference Variable Costs Plus Fixed Costs Total cost of 24.900 bindings making 24.900 bindings is as follows: ol Boards for $12 each. Cool Boards will pay $1.00 per unit to transport the bindings to its manufacturing plant, where it Data Table that purchasing the bindir ny zero balances. Round buy) of fixed overhead. Prepare nearest whole dollar Use Direct materials. 27.000 ke Direct labor. 84 000 Buy (Outsou Bindings ings Variable manufacturing overhead 54 000 Fixed manufacturing overhead 84.000 $249.000 Total manufacturing costs Cost per pair ($249,000 = 24.900) Print Done Done Ek Check Answer ) || 4 of 4 (2 complete) ost of making 24,900 bindings is as follows: to Cool Boards for $12 each. Cool Boards will pay $1.00 per unit to nsport the bindings to its manufacturing plant, where it will add its Requirements edict that for any ze ost to buy repare an anal 1. Use a minus Make Bindings 1. Cool Boards' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,300 of fixed overhead. Prepare an analysis to show whether the company 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 $3.400 to profit. Total fixed costs will be the same as if Cool Boards had produced the bindings. Show which alternative makes the best use of Cool Boards' facilities. (a) make bindings. (b) buy bindings and leave facilities idle or (c) buy bindings and make another product. Print Done click Check Answers Clear All