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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) Suppose Topnotch will sell bindings

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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) Suppose Topnotch will sell bindings to Wild Ride for 516 each. Wild Ride would pay $3 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 - Requirements Re ove col X Jany to avoid $2,000 of fixed levant costs. For the Difference gs in-house.) Val 1. Wild Ride's accountants predict that purchasing the bindings from Topnotch 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 Topnotch can be used to manufacture another product that will contribute $3.200 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 (e) buy bindings and make another product FE Pu Print Done Tre Logo Data Table - X Total differential cost Should Wild Ride make Decision $ Direct materials Direct labor Variable overhead Requirement 2. The fac profit Total fixed costs w (Only enter the net relev 17,600 3.400 2.120 6.900 other product that will contribute $3.200 to makes the best use of Wild Ride's facilities becreases to net costs.) Fixed overhead Total manufacturing costs for 1.900 bindings $ 30.020 Rind Print Done Enter any number in the Wild Ride manufactures snowboards. Its cost of making 1.900 bindings is as follows: Click the icon to view the costs.) Suppose Topnotch will sel bindings to Wild Ride for S16 each. Wild Ride would pay $3 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 Topnotch 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. (Only enter the net relevant costs. For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the bindings in-house.) Make Outsource Difference Binding costs Bindings Bindings (Make-Outsource) Variable costs Direct materials Direct labor Variable overhead Fixed costs Purchase price from Topnotch Transportation Logo Total differential cost of 1.900 bindings Should Wild Ride make or buy the bindings? Decision Requirement 2. The facilities freed by purchasing bindings from Topnotch can be used to manufacture another product that will contribute $3.200 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 (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 Rinding costs Rindings Idle Product Enter any number in the edit fields and then continue to the next question Wild Ride manufactures snowboards. Its cost of making 1.900 bindings is as follows: Click the icon to view the costs.) Suppose Topnotch will sell bindings to Wild Ride for S16 each Wild Ride would pay $3 per unit to transport the bindings to its manufacturing plant, wher it would add its own logo at a cost of $0.50 per binding. Read the requirements Total differential cost of 1,900 bindings Should Wild Ride make or buy the bindings? Decision Requirement 2. The facilities freed by purchasing bindings from Topnotch can be used to manufacture another product that will contribute $3.200 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. (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 Direct labor Variable overhead Fixed costs Purchase price from Topnotch Transportation Logo Expected profit from new product Expected net cost of obtaining 1.900 bindings Which alternative makes the best use of Wild Ride's facilities? Decision Enter any number in the edit fields and then continue to the next question Wild Ride manufactures snowboards. Its cost of making 1.900 bindings is as follows: Click the icon to view the costs.) Suppose Topnotch will sell bindings to Wild Ride for $16 each. Wild Ride would pay $3 per unit to trans it would add its own logo at a cost of $0.50 per binding, Read the requirements Total differential cost of 1.900 bindings Should Wild Ride make or buy the bindings? Decision Requirem profit. Tota (Only ente Buy the bindings Make the bindings purchasing bindings from Topnotch can be used to manufacture a : as if Wild Ride had produced the bindings. Show which alternativ Ir all costs as positive values. Use a minus sign or parentheses for Outsource Bindings Make Facilities Make New Bindings Idle Product Binding costs Variable Costs Direct materials Direct labor Variable overhead Fixed costs Purchase price from Topnotch Transportation Logo Expected profit from new product Expected net cost of obtaining 1.900 bindings Which alternative makes the best use of Wild Ride's facilities? Decision Enter any number in the edit fields and then continue to the next question Decision: Requirement 2. The facilities freed by purchasing bindings from Topnotch can be used to manufacture an profit. Total fixed costs will be the same as if Wild Ride had produced the bindings. Show which alternative (Only enter the net relevant costs. Enter all costs as positive values. Use a minus sign or parentheses for Outsource Bindings Make Facilities Make New Binding costs Bindings Idle Product Variable Costs Direct materials Direct labor Variable overhead Fixed costs Purchase price from Topnotch Transportation Logo Expected Buy the binding and leave the facilities idle. Expected Buy the binding and use the facilities to make the other product. Which alte Make the bindings Decision: Enter any number in the edit fields and then continue to the next

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