Winter Sports manufactures snowboards its cost of making 1,880 bindings is as follows: (Click the icon to view the costs) Suppose an outside supplier will sell bindings to Winter Sports for $12 each Winter Sports will pay $3.00 per un to transport the bindings to binding Read the requirements manufacturing plant, where we add its own logo a cost of $040 per Requirement 1. Winter Sports' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2.400 of fred overthead. Prepare an analysis to show whether Winter Sports should make or buy the bindings. (Enter a "O for any zero balances. Round any per unit amounts to the nearestent and your final answers to the nearest whole dollar. Use a minus sign or parentheses in the Derece column when the cost to make exceeds the cost to buy) Incremental Analysis Buy Outsource Outsourcing Decision Bindings Bindings Difference Variable Costs Plus Fred Costs Total cost of 1,500 bindings Decision Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3.400 produced the bindings Show which temative makes the best use of Winter Sports's facilities a) make bindings by bindings and are faciles de or balance. Round any per unit amount to the nearestent and your answer to the whold ) Buy Outsource) Bindings Incremental Analysis (a) Make (6) Leave (c) Make Outsourcing Decision Binding Facilities die Another Product proft. Tot fed costs will be the same as Winter Sports had buy bindings and make another product o ry Decision Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3.400 to profit. Totalfred costs will be the same as if Winter Sports had produced the bindings. Show which alternative makes the best use of Winter Sports's facilities: (a) make bindings, b) buy bindings and leave facilities ide, or (e) buy bindings and make another product. E ra o for any zero balances. Round any per unit amounts to the nearest cant and your final answers to the nearest whole dar) (a) Make Binding Buy Outsource) Bindings (1) Leave Facilities Idle Another Product Incremental Analysis Outsourcing Decision Variable Costa Plus: Fixed Costa Total cost of 1.880 bindings Less: Profit from another product Net cost Decision: i Data Table Direct materials. .......... $ 18,250 Direct labor....... Variable manufacturing overhead....... 3,300 2,100 6,900 Fixed manufacturing overhead. ...... $ 30,550 Total manufacturing costs.................... Cost per pair ($30,550 / 1,880). ..... $ 16.25 Print Done