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- X Requirements 1. Vild Ride's accountants predict that purchasing the bindings from Hemingway will enable the company to avoid $1.800 of fixed overhead. Prepare an analysis to show whether Wild Ride should make or buy the bindings. 2. The facilities freed by purchasing bindings from Hemingway can be used to manufacture another product that will contribute $3,000 to profit. Total fixed costs will be the same as if ld Ride had produced the bindings. Show which altenative makes the best use of id Ride's facilities: (a) make bindings. (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. Print Done - X Data Table Direct materials 17,530 Direct labor 3,500 2,100 Variable overhead 7,000 Fixed overhead 30,130 Total manufacturing costs for 1,800 bindings Print Done Wild Ride manufactures snowboards. Its cost of making 1,800 bindings is as follows: Click the icon to view the costs.) Suppose Hemingway will sell bindings to Wild Ride for $16 each. Wild Ride would pay $2 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.70 per binding. Read the requirements Requirement 1. Wild Ride's accountants predict that purchasing the bindings from Hemingway will enable the company to avoid $1,800 of foxed overhead. Prepare an analysis to show whether Wild Ride 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 Outsource Difference Bindings (Make-Outsource) Binding costs Bindings Variable costs: Direct materials Direct labor Variable overhead Fioxed costs Purchase price from Hemingway Transportation Logo Total differential cost of 1,800 bindings

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