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Outdoor Life manufactures snowboards. Its cost of making 1,900 bindings is as follows (Click the icon to view the costs ) Suppose an outside supplier will sell bindings to Outdoor Life for $17 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 Requirement 1. Outdoor Life's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,200 of fixed overhead. Prepare an analysis to show whether the company should make or buy the binding 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 Make Buy (Outsource) Outsourcing Decision Bindings Bindings Difference Variable Costs Plus: Fixed Costs Total cost of 1,900 bindings 1 Data Table Decision X Requirement 2. The facilities fre Requirements bute $3,3 alternative makes th ke another final answers to the nearest who Direct materials. S . ..... $ 17.500 Direct labor . 3,000 1. Outdoor Life's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,200 of fixed overhead Prepare an analysis to show whether the Variable manufacturing overhead 3,230 Incremental Analysis company should make or buy the bindings. Fixed manufacturing overhead . 7 050 Outsourcing Decision 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3,300 to profit. Total fixed costs will be the same as if Total manufacturing costs. 30 780 Variable Costs Outdoor Life had produced the bindings Show which alternative makes the best use of 16 20 Outdoor Life's facilities (a) make bindin a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy Cost per pair ($30,780 + 1,900) Enter any number in the edit fle bindings and make another product Print Done Print Done 9:39 PM Type here to search