The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $ 2,800 to profit. Total fixed costs will be the same as if Mountain Sports had produced the bindings. Show which alternative makes the best use of Mountain Sports's facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. (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.)

Homework: Chapter 8 Homework Save Score: 3.85 of 10 pts 3 of 3 (3 complete) HW Score: 68.7%, 20.61 of 30 pts P8-52A (book/static) Question Help * Mountain Sports manufactures snowboards. Its cost of making 1,850 bindings is as follows: (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 Data Table Buy (Outsource) Bindings (a) Make Binding Incremental Analysis (b) Leave (c) Make Outsourcing Decision Facilities Idle Another Product Variable Costs Plus: Fixed Costs Total cost of 1,850 bindings Less: Profit from another product Net cost Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs Cost per pair ($29,785 1,850) S 18,500 2,900 1,285 7.100 S 29,785 S 16.10 Enter any number in the edit fields and then click Check Answer Print Done Clear All er remaining