Winter Sports manufactures snowboards. Its cost of making 1,800 bindings is as follows: (Click the icon to view the costs.) Suppose Lewis will sell bindings to Winter Sports for $14 each. Winter Sports would pay $1 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 2. The facilities freed by purchasing bindings from Lewis can be used to manufacture another produl 4 Requirements bindings. Show which alternative makes the best use of Winter Sports' facilities. (Only enter the net relevant costs. Make Outsource Bindings Facilities Make New Idle Product Binding costs Bindings Variable Costs: Direct materials Direct labor Variable overhead 1. Winter Sports' accountants predict that purchasing the bindings from Lewis will enable the company to avoid $2,000 of fixed overhead. Prepare an analysis to show whether Winter Sports should make or buy the bindings, The facilities freed by purchasing bindings from Lewis can be used to manufacture another product that will contribute $3,200 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 (a) buy bindings and make another product. 17500 2800 2040 Fixed costs i Data Table - X Purchase price from Lewis Transportation Logo Direct materials $ Expected profit from new product Direct labor Variable overhead Fxpected net cost of obtaining 1 800 bindinns 17,500 2,800 2,040 6,700 29,040 Enter any number in the edit fields and then continue to the next question. Fixed overhead $ Save for Later Total manufacturing costs for 1,800 bindings