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Winter Sports manufactures snowboards. Its cost of making 19,000 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will

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Winter Sports manufactures snowboards. Its cost of making 19,000 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Winter Sports for $17 cach. Winter Sports will pay $2.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.40 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 the company 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 exceods the cost to buy.) Ind Data Table Difference Ou Variable cl Plus: Fixed Total cost . Direct materials Direct labor..... Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs Cost per pair ($228,000 + 19,000). 22,000 81,000 44,000 81,000 $ 228,000 Decision: ---- $ 12.00 Requiremd product tha Show which idle, or (c) nearest col lier can be used to manufacture another Winter Sports had produced the bindings. bindings. (b) buy bindings and leave facilities Inces. Round any per unit amounts to the Print Done ? Enter any number in the edit fields and then continue to the next question. Winter Sports manufactures snowboards. Its cost of making 19,000 bindings is as follows: Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Winter Sports for $17 each. Winter Sports will pay $2.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.40 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 the company should make or buy the bindings. (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar. Use apninus 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 19,000 bindings M Decision: Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $2,600 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. (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar) Buy (Outsource) Bindings intin to the nortugstinn Winter Sports manufactures snowboards. Its cost of making 19,000 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Winter Sports for $17 each. Winter Sports will pay $2.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.40 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 the company should make or buy the bindings. (Enter a "0" 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.) Incremental Analysis Outsourcing Decision Make Bindings Buy (Outsource) Bindings Difference Variable Costs Plus: Fixed Costs Total cost of 19,000 bindings Decision: Requirem purchasing bindings from the outside supplier can be used to manufacture another product th: Buy the bindings ofit. Total fixed costs will be the same as if Winter Sports had produced the bindings. Show whic Make the bindings. use of Winter Sports' facilities: (a) make bindings. (b) buy bindings and leave facilities idle, or (c) her 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.) Decision: Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $2,600 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. (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar) Buy (Outsource) Bindings Incremental Analysis (a) Make (b) Leave (c) Make Outsourcing Decision Binding Facilities Idle Another Product Variable Costs Plus: Fixed Costs Total cost of 19,000 bindings Less: Profit from another product Net cost Decision: Enter any number in the edit fields and then continue to the next question. Corlater Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $2,600 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. (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 (Outsource) Bindings Incremental Analysis (a) Make (b) Leave (c) Make Outsourcing Decision Binding Facilities Idle Another Product Variable Costs Plus: Fixe Total cost Less: Pro Continue to make the bindings. Buy the bindings and use the facilities to make another product. Buy the bindings and leave the facilities idle. Net cost Decision: ut nuntion

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