X-Perience manufactures snowboards In cost of making 1,700 bindings is as follows: (Click the icon to view the costs) Suppose Wherspoon will sell bindings to X-Perience for 513 each X-Perience would pay $2 per unit to transport the bindings to its manufacturing plant, where it would add is own logo at a cost of so 70 per binding Read the regulaments Requirement 1.X-Perience's accountants predict that purchasing the bindings from Witherspoon will enable the company to avoid 2.400 of fixed overhead. Prepare an analysis to show whether X-Perience should make or buy the bindings. (Only enter the net relevant costs. For the Difference column, use a minus signor parentheses only when the cost of outsourcing exceeds the cost of making the bindings in house) Outsource Bindings Difference (Make-Outsource) Bindings Binding costs Variable costs Direct material Direct labor Variable overhead Purchase price from Wespoon Transportation 1 Enter any number in the beds and then continue to the next question X-Perience manufactures snowboards. Its cost of making 1,700 bindings is as follows TT (Click the icon to view the costs) Suppose Witherspoon will sell bindings to X-Perience for 513 each X-Perience would pay $2 per un to transport the bindings to its manufacturing plant, where it would add is own logo at a cost of 50 70 per binding Read the requirements Variable overhead Fred costs Purchase price from Witherspoon Transportation Logo Total diferential cost of 1.700 bindings Should X-Perience make or buy the bindings? Decision Requirement. The facilities freed by purchasing bindings from Witherspoon can be used to manufacture another product that will contribute 2.700 to proft Total feed cost be the same as IX-Perience had produced the Bindings Show which alternative makes the best use of X-Prince's facilities (Only enter the netrelevant costs Enteral costs as positive values Use a minus signor press for decreases to netcosts) Outsource Bindings X-Perience manufactures snowboards. Its cost of making 1,700 bindings is as follows (Click the icon to view the costs) Suppose Witherspoon will sell bindings to X - Pedience for $13 each X-Perience would pay $2 per unit to transport the binding to lis manufacturing plant, where would add its own bago at a cost of 50.70 per binding Read the rements Requirement 2. The facilities freed by purchasing bindings from Witherspoon can be used to manufacture another product that will contribute 52,700 to prole. Total fled costs will be the same as IX-Perience had produced the bindings. Show which allernative makes the best use of X-Perlence's facilities. (Only enter the net relevant costs. Enter all costs as positive values Use a minus sign or parentheses for decreases to met costs) Outsource Bindings Make Facilities Make New Binding costs Bindings Product Variable Costs Direct materials Direct labor Variable overhead Fred costs Purchase price from Witherspoon Transportation I Click the icon to view the costs) Suppose Witherspoon will sell bindings to X-Perience for 513 each X-Perience would pay $2 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of 50 70 per binding Read the requirements Direct materials Direct labor Variable overhead Fred costs Purchase price from Witherspoon Transportation Logo Expected profit from new product Expected netcost of obtaining 1.700 bindings Which leative makes the best use of X-Perience's face? Decision X-Perience manufactures snowboards. Is cost of making 1700 bindings is as follows. (Click the icon to view the costs) Suppose Witherspoon will sell bindings to X-Perience for $13 each. X-Perience would pay $2 per unit to transport the bindings to its manufacturing plant where it would add its own logo at a cost of 50.70 per binding Read the wirements Directa - X Data Table - X Requirements Direct lab Variable Fixed costs 1. X-Perience's accountants predict that purchasing the bindings from Witherspoon will enable Direct materials 5 17 570 the company to avoid 2,400 of fored overhead Prepare an analysis to show whether Purchase Dect labor 3.500 X-Perience should make or buy the bindings Transportati 2. The facilities freed by purchasing bindings from Witherspoon can be used to manufacture Variable overhead 2.000 another product that will contribute 2.700 to prolt. Total feed costs will be the same as if Logo 7.200 X-Perience had produced the bindings Show which alternative makes the best use of Placed overhead X-Perience's facilities (a) make bindings. (b) buy bindings and leave facilities ide or buy Expected prol 30 350 bindings and make another product Total manufacturing costs for 1.700 bindings Expected Which Print Done Print Done Decision
