Winter Sports manufactures snowboards. Its cost of making 2, 100 bindings is as follows: EEE(Click the icon to view the costs.) Suppose Lewis will sell bindings to Winter Sports for $12 each. Winter Sports would pay $3 per unit to transport the bindings to its manufacturing plant, where it would 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 Lewis will enable the company to avoid $2,400 of fixed overhead. Prepare an analysis to show whether Winter Sports should make or buy the bindings. (Only enter the net relevant costs. For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the bindings in-house.) Make Outsource Difference Binding costs Bindings Bindings (Make-Outsource) - X Variable costs: Requirements Direct materials Direct labor 1. Winter Sports' accountants predict that purchasing the bindings from Lewis will enable the company to avoid $2,400 of fixed overhead. Prepare an analysis to show whether Variable overhead Winter Sports should make or buy the bindings. Fixed costs N The facilities freed by purchasing bindings from Lewis can be used to manufacture another product that will contribute $2,900 to profit. Total fixed costs will be the same as if Purchase price from Lewis Winter Sports had produced the bindings. Show which alternative makes the best use of Transportation Winter Sports' facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. Logo Total differential cost of 2,100 bindings Print Done - X Data table Direct materials 17,530 Direct labor 2,700 Variable overhead 2, 100 6,500 Fixed overhead 28,830 Total manufacturing costs for 2, 100 bindings Print Done Clear all Check