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Data table Direct materials $ 17,550 Direct labor 3,000 Variable overhead 2,120 6,700 Fixed overhead $ $ Total manufacturing costs for 1,800 bindings 29,370 Requirements 1. Winter Sports' accountants predict that purchasing the bindings from Lewis will enable the company to avoid $1,800 of fixed overhead. Prepare an analysis to show whether Winter Sports should make or buy the bindings. 2. The facilities freed by purchasing bindings from Lewis can be used to manufacture another product that will contribute $3,300 to profit. Total fixed costs will be the same as if Winter Sports had produced the bindings. Show which alternative makes the best use of Winter Sports' facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (C) buy bindings and make another product. Winter Sports manufactures snowboards. Its cost of making 1.800 bindings is as follows: Click the icon to view the costs) Supoor will see bindings to Winter Sports for $16 each. Winter Sports would pay $2 per unit to transport the bindings 10 its manufacturing plant, where it would add to own logo oto cost of 50 40 perbinding Read the itements Requirement 1 Winter Sports' accountants predict that purchasing the bindings from Lews will enable the company to avoid $1.800 of fixed Overhead. Prepare an analysis to show whether Winter Sports 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 exceed 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 Lewis Transportation Logo Total differential cost of 1,800 bindings Should Winter Sports make or buy the bindings? Decision Requirement 2. The facilities freed by purchasing bindings from Lewis can be used to manufacture another product that will contribute $3,300 to profit. Total fixed costs will be the same as Winter Sports had produced the bindings. Show which alternative makes the best use of Winter Sports' tacities (Only enter the net relevant costs Enter all costs a positive values. Use a minus signor parentheses for decreases to net costs) Outsource Bindings Make Facilities Make New Binding costs Bindings Idle Product Variable Costa Direct materials Direct labor Variable overhead Fixed costs Purchase price from Lewis Transportation Logo Expected profit from new product Expected net cost of obtaining 1.800 bindings Which alternative makes the best use of Winter Sports facilities? Decision