Outdoor Life manufactures snowboards. Its cost of making 2,100 bindings is as follows: (Click the icon to view the costs.) Suppose Livingston will sell bindings to Outdoor Life for $14 each. Outdoor Life would pay $2 per unit to transport the bindings to its manufacturing plant, where it would 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 Livingston will enable the company to avoid $1,900 of fixed overhead. Prepare an analysis to show whether Outdoor Life should make or buy the bindings. parentheses only when the cost of outsourcing exceeds the cost of making the bindings in-house.) Difference Make Bindings Outsource Bindings Binding costs (Make-Outsource) Variable costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Livingston Transportation Logo Total differential cost of 2,100 bindings X Requirements 1. Outdoor Life's accountants predict that purchasing the bindings from Livingston will enable the company to avoid $1,900 of fixed overhead. Prepare an analysis to show whether Outdoor Life should make or buy the bindings. 2. The facilities freed by purchasing bindings from Livingston can be used to manufacture another product that will contribute $3,100 to profit. Total fixed costs will be the same as if Outdoor Life had produced the bindings. Show which alternative makes the best use of Outdoor Life's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. Print Done - X Data table $ Direct materials Direct labor Variable overhead Fixed overhead Total manufacturing costs for 2,100 bindings 17,510 3,300 2,110 6,400 $ 29,320 Print Done