Wild Ride manufactures snowboards. Its cost of making 2.100 bindings is as follows: (Click the icon to view the costs.) Suppose Livingston will sell bindings to Wild Ride for $12 each. Wild Ride would pay S3 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 TI Requirement Wild Ride's accountants predict that purchasing the bindings from Livingston 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. (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 GX Difference (Make-Outsource) Binding costs Data table Bindings Bindings Requirements Variable costs: Direct materials Direct materials Direct labor 17.560 1. 3,300 Variable overhead Direct labor Variable overhead 2,120 6,800 Wild Ride's accountants predict that purchasing the bindings from Livingston 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. The facilities freed by purchasing bindings from Livingston 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 (C) buy bindings and make another product. Fixed overhead Fixed costs Purchase price from Livingston Transportation 29.780 Total manufacturing costs for 2,100 bindings Logo Total differential cost of 2,100 bindings Print Done Print Done Should Wild Ride make or buy the bindings? Decision: Requirement 2. The facilities freed by purchasing bindings from Livingston 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 Livingston Transportation Logo Expected profit from new product Expected net cost of obtaining 2,100 bindings Which alternative makes the best use of Wild Ride's facilities? Activate Windows Cata Cattinentantiinta Linda