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X-Perience manufactures snowboards. Its cost of making 1,900 bindings is as follows: (Click the icon to view the costs.) Suppose Witherspoon will sell bindings to

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X-Perience manufactures snowboards. Its cost of making 1,900 bindings is as follows: (Click the icon to view the costs.) Suppose Witherspoon will sell bindings to X-Perience for $16 each. X-Perience would pay $3 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. X-Perience's accountants predict that purchasing the bindings from Witherspoon will enable the company to avoid $2,200 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 sign or parentheses only when the cost of outsourcing exceeds the cost of making the bindings in-house.) Make Outsource Difference Binding costs Bindings Bindings (Make-Outsource) Variable costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Witherspoon Transportation Logo Total differential cost of 1,900 bindings Should X-Perience make or buy the bindings? Decision: Requirement 2. The facilities freed by purchasing bindings from Witherspoon can be used to manufacture another product that will entides an inntil Tato find ante. h thn nmn n WV-Dneinnan hnd nandinn tha hindine Chhinh anh malen Enter any number in the edit fields and then continue to the next question Requirements X-Perience manufactures snd Click the icon to view the Suppose Witherspoon will sell manufacturing plant, where it w Read the requirements Requirement 1. X-Perience's of fixed overhead. Prepare an For the Difference column, use in-house) 1. X-Perience's accountants predict that purchasing the bindings from Witherspoon will enable the company to avoid $2,200 of fixed overhead. Prepare an analysis to show whether X-Perience should make or buy the bindings. 2. The facilities freed by purchasing bindings from Witherspoon can be used to manufacture another product that will contribute $3,400 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. Binding cos Print Done 1 Data Table Direct materials Direct labor Variable overhead 17,600 3,500 2,050 7.100 Fixed overhead 30,250 Total manufacturing costs for 1,900 bindings Print Done Requirement 2. The facilities freed by purchasing bindings from Witherspoon can be used to manufacture another product that will entribute e Anta no Total find net.ill he tha Ramn niy-Dorinnen und nadinas the hindinn eh hinh nennti malan

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