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Winter Sports manufactures snowboards. Its cost of making 1,900 bindings is as follows: Click the icon to view the costs.) Suppose an outside supplier will
Winter Sports manufactures snowboards. Its cost of making 1,900 bindings is as follows: Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Winter Sports for S12 each. Winter Sports will pay $3.00 per unit to transport the bindings to its manufacturing plant, where it will add ils own logo at a cost of $0.20 per binding. Read the requirements. Requirement 1. Winter Sports' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,100 of fixed overhead. 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 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.) Make Buy (Outsource) Incremental Analysis Outsourcing Decision Bindings Bindings Difference Variable Costs Plus: Fixed Costs Total cost of 1,900 bindings Decision
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