Wild Ride manufactures snowboards. Its cost of making 2,000 bindings is as follows: (Click the icon to view the costs.) Suppose Livingston will sell bindings to Wild Ride for S14 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 $0.40 per binding. Read the requirements. Requirement Wild Ride's accountants predict that purchasing the bindings from Livingston will enable the company to avoid $2,600 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 Bindings Difference (Make-Outsource) Requirements Bindings Binding costs Variable costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Livingston Transportation 1. Wild Ride's accountants predict that purchasing the bindings from Livingston will enable the company to avoid $2,600 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 Livingston 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's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. Logo i Data Table Total differential cost of 2,000 bindings $ Direct materials Direct labor 17,530 3,300 Variable overhead 2,120 6,400 Enter any number in the edit fields and then click Check Answer. Fixed overhead S 29,350 Total manufacturing costs for 2,000 bindings 3 parts remaining Clear All Check