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Winter Sports manufactures snowboards. Its cost of making 1,890 bindings is as follows: m Click the icon to view the cont.) Suppose an outside supplier

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Winter Sports manufactures snowboards. Its cost of making 1,890 bindings is as follows: m Click the icon to view the cont.) Suppose an outside supplier will soll bindings to Winter Sports for $11 each. Winter Sports 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 $0.50 per binding Read the requirements 1 Data Table Direct materials.. 18,000 Direct labor.. 3,200 Variable manufacturing overhead.... 2,340 6,700 Fixed manufacturing overhead $ 30,240 Total manufacturing costs .. Cost per pair ($30,240 + 1,890) $ 16.00 1 he Print Done ST Requirement 1. Winter Sports' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid 1,900 of fixed overhead Prepare an analysis to show whether the company should make or buy the bindings. (Enter a "O" for any zoro 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.) Incremental Analysis Make Buy (Outsource) Outsourcing Decision Bindings Bindings Difference Variable Costs Plus: Fixed Costs Total cost of 1,890 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 to profit. Total foxed 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 ide, or (e) buy bindings and make another product. (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) Buy (Outsourco) Bindings Incremental Analysis (a) Make (b) Leave (c) Make Outsourcing Decision Binding Facilities idle Another Product Variable Costs e Plus: Fixed Costs Total cost of 1,890 bindings DI Loss Profit from another product Netcost Decision

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