Winter Sports manufactures snowboards. Its cost of making 24,900 bindings is as follows: E (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Winter Sports for $18 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 $0.20 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 $2,500 of fixed overhead. Prepare an analysis to show whether Winter Sports 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.) Requirements Data Table Direct materials $ 27,000 Direct labor. 84.000 1. Winter Sports' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,500 of fixed overhead. Prepare an analysis to show whether Winter Sports should make or buy the bindings. 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3,200 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's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (C) buy bindings and make another product. Variable manufacturing overhead. Fixed manufacturing overhead. 54,000 84,000 $ 249,000 Total manufacturing costs. Cost per pair ($249,000 / 24,900) $ 10.00 Print Done Print Done Winter Sports manufactures snowboards. Its cost of making 24,900 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Winter Sports for $18 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 $0.20 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 $2,500 of fixed overhead. Prepare an analysis to show whether Winter Sports 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 Make Buy (Outsource) Bindings Outsourcing Decision Bindings Difference Variable Costs Plus: Fixed Costs Total cost of 24,900 bindings