Winter Sports manufactures snowboards. Its cost of making 2,100 bindings is as follows: B (Click the icon to view the costs.) Suppose Lewis will sell bindings to Winter Sports for $13 each. Winter Sports would pay $1 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. Outsource DITTerence Binding costs Bindings Bindings (Make-Outsource) Variable costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Lewis Transportation Logo Total differential cost of 2.100 bindinas Should Winter Sports make or buy the bindings? Decision: Requirement 2. The facilities freed by purchasing bindings from Lewis can be used to manufacture another product that will contribute $3,100 to profit. Total fixed costs will be the same as if Winter Sports had produced the bindings. Show which alternative makes the best use of Winter Sports' facilities. (Only enter the net relevant costs. Enter all costs as positive values. Use a minus sign or parentheses for decreases to net costs.) Outsource Bindings Make Facilities Make New Binding costs Bindings Idle Product Variable Costs: Direct materials ---I --- Direct labor Variable overhead Fixed costs Purchase price from Lewis Transportation Logo Expected profit from new product Expected net cost of obtaining 2,100 bindings Which alternative makes the best use of Winter Sports' facilities? Decision: x 1 Data Table Direct materials $ 17,580 Direct labor Variable overhead 2,600 2,070 7,100 Fixed overhead $ 29,350 Total manufacturing costs for 2,100 bindings Print Done