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X-Perience manufactures snowboards. Its cost of making 2,000 bindings is as follows: (Click the icon to view the costs.) Read the For the Difference column,
X-Perience manufactures snowboards. Its cost of making 2,000 bindings is as follows: (Click the icon to view the costs.) Read the 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.) Requirements 1. X-Perience's accountants predict that purchasing the bindings from Lancaster will enable the company to avoid $2,500 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 Lancaster can be used to manufacture another product that will contribute $3,200 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. Data table
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