=+8-17 K Relevant and irrelevant costs OBJECTIVE 2 Answer the following questions. 1 Hughes Computers makes 5200
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=+8-17 K Relevant and irrelevant costs OBJECTIVE 2 Answer the following questions.
1 Hughes Computers makes 5200 units of a circuit board, CB76, at a cost of $280 each. Variable cost per unit is $190 and fixed cost per unit is $90. Peach Electronics offers to supply 5200 units of CB76 for $260. If Hughes Computers buys from Peach Electronics it will be able to save $10 per unit in fixed costs but continue to incur the remaining $80 per unit. Should Hughes Computers accept Peach Electronic’s offer? Explain.
M08_HORN3377_02_LT_C08.indd 328 2/09/13 3:42 PM
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 9781442563377
2nd Edition
Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan
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