Winter Sports manufactures snowboards. Its cost of making 2,000 bindings is as follows: E (Click the icon to view the costs.) Suppose Witherspoon will sell bindings to Winter Sports for $13 each. Winter Sports would pay $1 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of S0.40 per binding. Read the requirements. Requirement 1. Winter Sports' accountants predict that purchasing the bindings from Witherspoon will enable the company to avoid $2,000 of fixed overhead. Prepare an analysis to show whether Winter Sports should make or buy the binding (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.) Outsource Make Difference Data Table Binding costs Bindings Bindings (Make-Outsource) Variable costs: Direct materials Direct materials 17,590 Direct labor Direct labor 2,600 Variable overhead Variable overhead 2,060 Fixed costs 6,900 Fixed overhead Purchase price from Witherspoon S 29,150 Transportation Total manufacturing costs for 2,000 bindings Logo Total differential cost of 2,000 bindings Print Done Should Winter Sports make or buy the bindings? Decision: Make the bindings Requirement 2. The facilities freed by purchasing bindings from Witherspoon can be used to manufacture another product that will contribute $3,300 to profit. Total fixed costs will be the same as if Winter Sports had produced the bindings. Shov which alternative makes the best use of Winter Sports' facilities. (Only enter the net relevant costs. Enter all costs as positive values. Use a minus sign or parentheses for decreases to net costs.) Outsource Bindings Make New Make Facilities Bindings Binding costs Idle Product Variable Costs: i Direct materials Data Table Direct labor Variable overhead Fixed costs Direct materials 17,590 Purchase price from Witherspoon Direct labor 2,600 Transportation 2,060 Variable overhead 6,900 Logo Fixed overhead $ 29,150 Expected profit from new product Total manufacturing costs for 2,000 bindings Expected net cost of obtaining 2,000 bindings Print Done Which alternative makes the best use of Winter Sports' facilities? Decision: Make the bindings