X-Perience manufactures snowboards. Its cost of making 1,880 bindings is as follows: (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to X-Perience for 517 each. X-Perience will pay $2.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.40 per binding, Read the requirements Requirement 1. X-Perience's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,100 of fixed overhead. Prepare an analysis to show whether the company 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) Outsourcing Decision Bindings Bindings Difference Variable Costs Plus: Fixed Costs Total cost of 1,880 bindings Decision: Requirement 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $2,800 to profit Total fixed costs will be the same as if X-Perience had produced the bindings. Show which alternative makes the best use of X-Perience's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (e) buy bindings and make another product. (Enter a "o* for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar) Buy (Outsource) Bindings Incremental Analysis (a) Make (b) Leave (c) Mako Outsourcing Decision Binding Facilities idle Another Product Variable Costs Plus: Fixed Costs Total st of 1,880 bindings Loss: Profit from another product Net cost Decision X i Data Table $ 18,250 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 3,300 2,100 6,900 $ 30,550 Total manufacturing costs Cost per pair ($30,550 = 1,880) 16.25 Print Done * Requirements 1. X-Perience's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,100 of fixed overhead. Prepare an analysis to show whether the company 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 $2,800 to profit. Total fixed costs will be the same as if X-Perience had produced the bindings. Show which alternative makes the best use of X-Perience's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. Print Done Make Buy (Outsource) Bindings Bindings Difference Incremental Analysis Outsourcing Decision Variable Costs Plus: Fixed Costs Total cost of 1,880 bindings Decision: Requirem Total fixed bindings, the neares Make the bindings. purchasing bindings from the outside supplier can be used to manufacture anot X-Perience had produced the bindings. Show which alternative makes the bes cilities idle, or (c) buy bindings and make another product. (Enter a "0" for any z 3 to the nearest whole dollar.) Buy the bindings Rumutual Rinding (a) Make Binding Buy (Outsource) Bindings (b) Leave (c) Make Facilities Idle Another Product Incremental Analysis Outsourcing Decision Variable Costs Plus: Fixed Costs Total cost of 1,880 bindings Less: Profit from another product Net cost Decision: Buy the bindings and use the facilities to make another product. Buy the bindings and leave the facilities idle. Continue to make the bindings