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Wild Ride manufactures snowboards. Its cost of making 1,700 bindings is as follows: (Click the icon to view the costs.) Suppose Monroe will sel bindings

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Wild Ride manufactures snowboards. Its cost of making 1,700 bindings is as follows: (Click the icon to view the costs.) Suppose Monroe will sel bindings to Wild Ride for S15 each, Wild Ride 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 Requirement 1. Wild Ride's accountants predict that purchasing the bindings from Monroe will enable the company to avoid $2 200 of fixed overhead. Prepare an analysis to show whether Wild Ride should make or buy the bindings. (Only enter the net relevant costs. For the Difference column, use a minus sign or parentheses only when the cost of outsourcing xoods the cost of making the bindings in-house) Make Bindings Outsource Bindings Difference (Make-Outsource) Binding costs Variable costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Monroe Transportation Logo Total differential cost of 1.700 bindings Enter any number in the edit fields and then click Check Answer i Requirements 1. Wild Ride's accountants predict that purchasing the bindings from Monroe will enable the company to avoid $2,200 of fixed overhead. Prepare an analysis to show whether Wild Ride should make or buy the bindings. 2. The facilities freed by purchasing bindings from Monroe can be used to manufacture another product that will contribute $3,400 to profit. Total fixed costs will be the same as if Wild Ride had produced the bindings. Show which alternative makes the best use of Wild Ride's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. Print Done Data Table X Direct materials $ 17,600 Direct labor 3,100 Variable overhead 2,090 6,700 F Fixed overhead $ 29,490 Total manufacturing costs for 1,700 bindings Print Done

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