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Wild Ride manufactures snowboards. Its cost of making 1900 bindings is as follows: E (Click the icon to view the costs.) Suppose an outside supplier

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Wild Ride manufactures snowboards. Its cost of making 1900 bindings is as follows: E (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Wild Ride for $18 each. Wild Ride will pay $3.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.70 per binding. Read the reguirements. Requirement 1, Wild Rice's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $1,900 of fixed overhead. Prepare an analysis to show whether Wild Ride should make or buy the bindings. Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy incremental Analysis Make Buy outsource Bindings Outsourcing Decision Bindings Difference Variable Costs Plus: Fixed Costs Total cost of 1,900 bindings Decision: Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3,500 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'ss facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dolla Buy (Outsource) Bindings (a) Make (b) Leave (c) Make Incremental Analysis Outsourcing Decision Binding Facilities Idle Another Product Variable Costs Plus: Fi xed Costs Total cost of 1,900 bindings Less: Profit from another product Net cost Decision

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