Cool Boards manulactures snowboards Its cost of making 1800

Cool Boards manulactures snowboards. Its cost of making 1,800 bindings is as follows D fCick the icon to view the costs.) Suppose Witherspoon will sall bindings to Cool Boards for $15 each Cool Boards would pay $3 per unit to transport the bindings to ts manufacturing plant, where it would add its own logo at a cost of 50 40 par binding Read the requiremenb Only enter the net relevant coss For the Difference column, use a minus sign or parentheses only wthen the oost of outsouraing exceeds the oost of making the bindiegs in-house) Make Outsource Difference Binding costs Bindings Bindings Drect mateials Dreat iabor Varable overhead 17.560 3,000 060 Direct maerials Direct iabor Purchase price from Witherspoorn Logo Print Done Shouid Cool Boards make or buy the bindings? Enter any number in the edit felds and then continue to the next question

Solution

Binding cost Make Outsource Difference Various cost Material 17560 17560 Labour 3000 3000 Variable overheads 2080 2080 Fixed cost 2400 2400 Purchase price 27000 -27000 Transportation 5400 -5400 Logo 720 -720 Total differential cost f 1800 units 25040 33120 -8080 Companny should MAKE the product.