Wally World makes cross-country skis. Its manufacturing cost of 5,000 fixings is as follows:

Direct materials	$44,000
Direct labour	8,500
Variable Overhead	5,000
Fixed overhead	16,000
Total manufacturing costs of 5000 fixings	$73,500

Wally World can purchase bindings from another manufacturer for $11.00 each. They would pay an additional $1.50 per unit to have the bindings shipped to their manufacturing plant. They would add their logo to each binding for an additional $0.70 per unit. If Wally World buys the bindings, they can avoid fixed overhead costs of $7,500.

Required

Should Wally World continue to make the bindings or buy them from the other manufacturer? Show detailed calculations to support your decision.