X-Perience manufactures snowboards. Its cost of making 2,000 bindings is a follows: (Click the icon to view the costs.) Suppose Monroe will sell bindings to X- Perience for $14 each. X-Perience would pay 1 per unit 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 Monroe will enable the company to avoid $1,800 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 Qutsource Difference Bindings (Make-Outsource) Binding costs Bindings Variable costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Monroe Transportation Logo Total differential cost of 2,000 bindings Should X- Perience make or buy the bindings? Decision: Requirement 2. The facilities freed by purchasing bindings from Monroe 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 Perience's facilities. (Only ente net relevant costs. Enter all costs as positive values. Use a minus sign or parentheses decreases to costs.) Requirement 2. The facilities freed by purchasing bindings from Monroe 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 altemative makes the best use of X- Perience's facilities. (Only enter the net relevant costs. Enter all costs positive values. Use a minus sign or parentheses for decreases to net costs.) Outsource Bindings Make Facilities Make New Binding costs Bindings Product Idle Variable Costs Direct materials Direct labor Variable overhead Fixed costs Purchase price from Monroe Transportation Logo Expected profit from new product Expected net cost of obtaining 2,000 bindings Which altemative makes the best use of X-Perience's facilities? Decision: Ou iliti Data Table dle Direct materials 17,540 Direct labor 3,000 Variable overhead 2,080 6,300 Fixed overhead 28,920 Total manufacturing costs for 2,000 bindings Print Done