X-Perience manufactures snowboards. Its cost of making 2,000 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 $2 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.60 per binding. Read the requirements Requirement 1. X-Perience's accountants predict that purchasing the bindings from Witherspoon will enable the company to avoid $2,600 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 x (Make-Outsource) Data Table Variable costs: Direct materials Direct labor Direct materials $ 17,510 3,500 Variable overhead Direct labor Fixed costs Variable overhead 2,090 6,300 Fixed overhead Purchase price from Witherspoon Transportation $ 29,400 Total manufacturing costs for 2,000 bindings Logo Total differential cost of 2,000 bindings Print Done 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 contribute $3,300 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. (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 Make Facilities Make New Binding costs Bindings Idle Product Variable Costs Direct materials Direct labor Variable overhead Fixed costs Purchase price from Witherspoon Transportation Logo Expected profit from new product Expected net cost of obtaining 2,000 bindings Which alternative makes the best use of X-Perience's facilities? Decision