Wild Ride manufactures snowboards. Its cost of making 2,100 bindings is as follows: (Click the icon to view the costs.) Suppose Lewis will sell bindings to Wild Ride for $13 each. Wild Ride would pay $2 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 Lewis 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 Difference Binding costs Bindings Bindings (Make-Outsource) Data Table Variable costs: Direct materials Direct labor Direct materials $ 17,550 Direct labor 2,900 Variable overhead Variable overhead 2,110 Fixed costs 6,800 Fixed overhead Purchase price from Lewis Transportation 29,360 Total manufacturing costs for 2,100 bindings Logo Total differential cost of 2,100 bindings Requirements 1. Wild Ride's accountants predict that purchasing the bindings from Lewis 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 Lewis 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. Enter any number in the edit fields and then click Check Answer. Help Me Solve This DemoDocs Example Get More Help