-x 1 Requirements 1. Cool Boards' accountants predict that purchasing the bindings from Topnotch will enable the company to avoid $2,600 of fixed overhead. Prepare an analysis to show whether Cool Boards should make or buy the bindings. The facilities freed by purchasing bindings from Topnotch can be used to manufacture another product that will contribute $3,000 to profit. Total fixed costs will be the same as if Cool Boards had produced the bindings. Show which alternative makes the best use of Cool Boards' facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. 2. Print Done Data Table $ 17,550 2,600 2,060 6,400 $ 28,610 Direct materials Direct labor Variable overhead Fixed overhead Total manufacturing costs for 2,100 bindings PrintDone Cool Boards manufactures snowboards. Its cost of making 2,100 bindings is as follows: EEB (Click the icon to view the costs.) Suppose Topnotch will sell bindings to Cool Boards for $13 each. Cool Boards would pay $1 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.50 per binding Read the requirements Requirement 1. Cool Boards' accountants predict that purchasing the bindings from Topnotch will enable the company to avoid $2,600 of fixed overhead. Prepare an analysis to show whether Cool Boards 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 Binding costs Bindings Variable costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Topnotch Logo Total differential cost of 2,100 bindings Should Cool Boards make or buy the bindings? Decision Requirement 2. The facilities freed by purchasing bindings from Topnotch can be used to manufacture another product that will contribute $3,000 to profit. Total fxed costs will be the same as if Cool Boards had produced the bindings. Show which alternative makes the best use of Cool Boards' 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 Facilities Make Make New Binding costs Bindings ldle Product ariable Costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Topnotch Logo Expected profit from new product Expected net cost of obtaining 2,100 bindings Which alternative makes the best use of Cool Boards facilities? Decision