WILD RIDE MANUFACTURES..

Wild Ride manufactures snowboards. Its cost of making 23,600 bindings is as follows: EEB (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Wild Ride for $12 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 $0.40 per binding. Read the requirements Requirement 1. Wild Ride's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,100 of fixed overhead. Prepare an analysis to show whether Wild Ride should make or buy the bindings. (Enter a "O" 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.) Make ncremental Analysis Buy (Outsource) Bindings Bindings Outsourcing Decision Difference Variable Costs 82000 Plus: Fixed Costs Total cost of 23,600 bindings 1. Wild Ride's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,100 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 the outside supplier can be used to manufacture another product that will contribute $3,000 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. i Data Table 82,000 48,000 82,000 $ 236,000 Print Done