Winter Sports manifuchures snowboerds. 155 cost of making 2,000 bindings is as folioms: (Click the icon to view the conts) Seppose Topnotchwif soll bindogs to Winter Sportsior \$HEwach. Winter Sportswould poy srper unit to transport the bindings to its manutacturng plart, where it would add its own logo at a coat of so.soper binding. Read the requireneths. Data table Requirements 1. Winter Sports' accountants predict that purchasing the bindings from Topnotch will enable the company to avoid $2,500 of fixed overhead. Prepare an analysis to show whether Winter Sports should make or buy the bindings. 2. The facilities freed by purchasing bindings from Topnotch can be used to manufacture another product that will contribute $2,900 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. Requirement 1. Winter Sports' accountants predict that purchasing the bindings from Topnotch wil enable the company to avoid $2,500 of fxed ovarhadd. Prepare 8n analyis to show whathar making the bindincs inthouse.) Winter Sports manutactures snowboards, Its cost of making 2,000 bindings is as follows: (Cick the icon to view the costs.) Suppose Topnotch will sell bindings to Winter Sports for $15 each. Winter Sports would pay $2 per unit to transport the bindings to its manulacturing plant where it would add its ewn logo at a come of $0.50 per binding. Fread the Snould winter sports make or buy the bundings? Decision: Requirement 2. The tacilibes lreed by purchasing bindings from Topnotch can be used to manufacture another product that wil contribule $2,900 to profit Total fixed costs wil be the same as it Winter Sports had produced the bindings. Show which allernative makes the best use of Winter Sports' facilices. (Only enter the net relevant costs. Enler all costs as positive valies. Use a minus sign or parentheses for decreases to net costs.) Binding costs Variable Costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Topnotch Transportation Logo Expected profit from new product Expected net cost of obtaining 2,000 bindings Variable Costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Topnotch Transportation Logo Expected profit from new product Expected net cost of obtaining 2,000 bindings Which alternative makes the best use of Winter Sports' facilities? Decision
