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Mountain Sports' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $ 2,000 of fixed overhead. Prepare an analysis to show whether Mountain Sports should make or buy the bindings. (Enter a "0" for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy.)

Homework: Chapter 8 Homework Save 3 of 3 (2 complete) HW Score: 55.88%, 16.76 of 30 pts Score: 0 of 10 pts P8-52A (book/static) Mountain Sports manufactures snowboards. Its cost of making 1,850 bindings is as follows Question Help (Click the icon to view the costs.) Suppose an outside supplier will sell bindings to Mountain Sports for $14 each. Mountain Sports will pay $1.00 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.70 per binding Read the requirements Requirement 1. Mountain Sports' accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid $2,000 of fixed overhead. Prepare an analysis to show whether Mountain Sports should make or buy the bindings. (Enter a "O for any zero balances. Round any per unit amounts to the nearest cent and your final answers to the nearest whole dollar. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy) Data Table Buy (Outsource) Bindings Incremental Analysis Make Outsourcing Decision Bindings Difference Variable Costs Plus: Fixed Costs Total cost of 1,850 bindings Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs $18,500 2,900 1,285 7,100 $ 29,785 Enter any number in the edit fields and then click Check Answer remaining

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