See question below. I'm not 100% sure i'm correct on the answer. Can you let me know if this is correct and coach me where i might be incorrect? My answer is highlighted in yellow.

Wally World manufactures cross country skis.Its cost of manufacturing 5,000 bindings is as follows:

Direct materials

$44,000

Direct labor

8,500

Variable overhead

5,000

Fixed overhead

16,000

Total manufacturing costs for 5,000 bindings

$73,500

Wally World can purchase bindings from another manufacturer for $11.00 each.They would pay an additional $1.25 per unit to have the bindings shipped to its manufacturing plant.They would add their logo to each binding for an additional $0.70 per unit.If Wally World purchases the bindings they can avoid fixed overhead costs of $7,500.

Required

Should Wally World continue to manufacture the bindings or purchase them from the other manufacturer?Show detailed calculations to support your decision.

**The cost to Mfg. is very similar to the cost of purchasing with only a difference of $250.In this case and without any other details, I would recommend they continue to manufacture the pieces instead of making a big change for such a small savings.If I had more detail (i.e. space was limited or capacity was an issue) it could impact this decision but just based on the numbers and the information given it would be best to continue to manufacture the pieces in-house even though it's a bit more expensive.