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1. Douglas Computers makes 5,400 units of a circuit board, CB76 at a cost of $280 each. Variable cost per unit is $200 and fixed

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1. Douglas Computers makes 5,400 units of a circuit board, CB76 at a cost of $280 each. Variable cost per unit is $200 and fixed cost per unit is $80. Peach Electronics offers to supply 5,400 units of CB76 for $260. If Douglas buys from Peach it will be able to save $20 per unit in foxed costs but continue to incur the remaining $60 per unit. Should Douglas accept Peach's offer? Explain. Begin by calculating the relevant cost per unit. (If an input field is not used in the table, leave the input field empty, do not enter a zero.) MakeBuy Relevant costs: Unit relevant cost Choose from any list or enter any number in the input fields and then continue to the next question. ? 2. LN Manufacturing is deciding whether to keep or replace an old machine. LN Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes. Should LN Manufacturing replace the old machine? Explain. Begin by calculating the total relevant costs. (If an input field is not used in the table, leave the input field empty; do not enter a zero. Use parentheses or a minus sign for numbers to be subtracted.) Keep Replace Difference Total relevant costs Choose from any list or enter any number in the input fields and then continue to the next question. per unit ROW HUWy quesuons. 1. Dougla Come is $200 a Douglas i Data Table $60 pery 2. LN Ma (Clic - aining rmation: Jould LN LN Manu Manufact Original cost Useful life per unit 1. Dougla is $200 a Douglas $60 per u aining Old Machine New Machine $ 10,400 $ 9,600 13 years 3 years 10 years 0 years 3 years 3 years $ 8.000 Not acquired yet $ 2,400 Not acquired yet $ 2,300 Not acquired yet $ 0 $ $ 17,500 $ 15,500 Jeld Current age Remaining useful life Accumulated depreciation Book value Current disposal value (in cash) Terminal disposal value (3 years from Annual cash operating costs Begin by empty; dd Relevant Print Done

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