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Wild Ride manufactures snowboards. Its cost of making 1,900 bindings is as follows: (Click the icon to view the costs.) Read the requirements. the Difference
Wild Ride manufactures snowboards. Its cost of making 1,900 bindings is as follows: (Click the icon to view the costs.) Read the requirements. the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the bindings in-house.) Requirements 1. Wild Ride's accountants predict that purchasing the bindings from Witherspoon will enable the company to avoid $2,000 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 Witherspoon can be used to manufacture another product that will contribute $3,300 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. Data table
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