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  3. winter sports manufactures snowboards. its cost of

Winter Sports manufactures snowboards. Its cost of making 1,800 bindings is as follows: (Click the...

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Accounting

imageimageimage Winter Sports manufactures snowboards. Its cost of making 1,800 bindings is as follows: (Click the icon to view the costs.) binding. Read the requirements. Data table Data table 1. Winter Sports' accountants predict that purchasing the bindings from Monroe will enable the company to avoid $2,100 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 Monroe can be used to manufacture another product that will contribute $2,700 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. \begin{tabular}{lll} \hline \multicolumn{1}{c}{ Binding costs } & \begin{tabular}{c} Make \\ Bindings \end{tabular} & \begin{tabular}{c} Outsource \\ Bindings \end{tabular} \\ \hline (Make-Outsource) \end{tabular} Should Winter Sports make or buy the bindings? Decision: let costs.)

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