Winter Sports' accountants predict that purchasing the bindings from Hemingway will enable the company to avoid $$2,600$ of fixed overhead. Prepare an analysis to show whether Winter Sports should make or buy the bindings.

The facilities freed by purchasing bindings from Hemingway can be used to manufacture another product that will contribute $$3,400$ to profit. Total fixed costs will be the same as if Winter Sports had produced the bindings. Show which alternative makes the best use of Winter Sports' facilities: $($a$)$ make bindings, $($b$)$ buy bindings and leave facilities idle, or $($c$)$ buy bindings and make another product.