Mountain Fun manufactures snowboards. Its cost of making 23,600 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Mountain Fun for $13 each Mountain Fun will pay $1.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.20 per binding. Read the requirements boards - X S.) Data Table spor ell bind o at a Utrect materials Direct labor account show w al answer 24,000 82,000 48,000 82,000 Variable manufacturing overhead he con balai + Colum Fixed manufacturing overhead. $ 236,000 Total manufacturing costs Cost per pair ($236,000 / 23,600) $ 10.00 Print Done I fields and Requirement 1. Mountain Fun's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,000 of fixed Overhead Prepare an analysis to show whether Mountain Fun should make or buy the bindings. Entara O for any zero balance. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar. Use a minus sign of parentheses in the Difference column when the cost to make exceeds the cost to buy) incremental Analysis Make Buy (Outsource) Outsourcing Decision Bindings finding Variable Costs Plus Fixed Costs in the fields and then continue to the next question ents Mountain Fun manufactures snowboards. Its cost of making 23,600 bindings is as follows: Click the icon to view the costs) Suppose an outside supplier will sell bindings to Mountain Fun for $13 each. Mountain Fun will pay $1.00 per unit to transport the bindings to its manufacturi plant, where it will add its own logo at a cost of $0.20 per binding Read the requirements Total cost of 23,600 bindings rive Decision Requirem profit. Tota (a) maket unit amou Make the bindings Buy the bindings. purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3,200 as if Mountain Fun had produced the bindings. Show which alternative makes the best use of Mountain Fun'ss facilities leave facilities ide, or (e) buy bindings and make another product (Enter a "O" for any zero balances. Round any per ur final answers to the nearest whole dollar) Buy (Outsource) Bindings Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3.200 to profit. Total fixed costs will be the same as if Mountain Fun had produced the bindings. Show which alternative makes the best use of Mountain Fun'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 Outsourcing Decision (a) Make I Binding Buy (Outsource) Bindings (b) Leave (c) Make Facilities die Another Product Variable Costs Plus: Fixed Costs Total cost of 23,600 bindings Less: Profit from another product Net cost Decision: Plus: Fixe Total cost Less: Prof Buy the bindings and use the facilities to make another product. Buy the bindings and leave the facilities idle. Continue to make the bindings. Net cost Decision
