Using the setup of the first picture, please only do requirement 2

A B D E F G H 1 J K L M . N O Q R S T V 16 17 18 19 20 21 22 23 24 25 Snowshoe should: 26 27 28 29 30 31 32 33 34 B D E F G H K 1 Snowshoes R Us makes snowshoes. It currently produces 2,100 pairs of snow shoes per year. 2 Its cost of making the bindings that are part of the snowshoes are as follows: 3 4 Direct materials 17,530 5 Direct labor 2,900 6 Variable overhead 2,110 7 Fixed overhead 6,800 8 9 Total cost for 2,100 bindings 29,340 10 11 Showshoes has an offer from Better Bindings to sell bindings to Shoeshoes for $ 12.00 each. 12 Snowshoes would pay $ 1.00 13 per unit to transport the bindings to its manufacturing plant, where it would add its own 14 logo at a cost of $ 0.40 per logo. 15 16 Requirement 1: 17 Snowshoes R Us accountants predict that purchasing the bindings from Better Bindings 18 will enable the company to avoid $ 2,500 in fixed overhead. Prepare an analysis 19 to show whether Snowshoes R Us should make or buy the bindings. 20 21 Requirement 2: 22 The facilities freed by purchasing bindings from Better Bindings 23 can be used to manufacture another product that will contribute $ 2,700 24 to profit. Total fixed costs will be the same as if Snowshoes R Us 25 had produced the bindings. Show which alternative makes the best use of Snowshoes facilities. 26 27 Requirement 3: 28 The Snowshoes demand has risen to the extent that Shoeshoes can sell all the product it 29 produces. Snowshoes investors desire to earn a 12% return on their combined 30 investment of $ 404,250 What price per pair should Shoeshoes set to achieve this return? 31 Following are the costs to produce 2,100 pairs of Snowshoes: 32 33 Direct materials 52,000 34 Direct labor 26,600 35 Variable overhead 15,200 36 Fixed overhead 15,200 37 38 Total cost for 2,100 pairs of shoes 109,000 39