irements Davanit Computers makes circuit boards. Review the information below for circuit board CB76. Number of units made 5,600 Total cost per unit $200 Variable cost per unit $160 Fixed cost per unit $40 Peach Electronics offers to supply the following for CB76: Units of CB76 Cost per unit 5,600 $180 If Davanit buys from Peach the following will occur: Savings in fixed cost per unit $15 Remaining fixed cost per unit that Davanit will continue to incur $25 Calculate the relevant cost per unit to continue making CB76 and the relevant cost per unit to purchase CB76. Sh Davanit accept Peach's offer? LF Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: Original cost Old Machine $10,900 New Machine $8,200 Useful life 10 years 3 years Current age 7 years 0 years Remaining useful life 3 years 3 years Accumulated depreciation $7,630 Not acquired yet Book value $3,270 Current disposal value (in cash) $2,700 Not acquired yet Not acquired yet Calculate the relevant cost per unit to continue making CB76 and the relevant cost per unit to purchase CB76. Should Davanit accept Peach's offer? 2 LF Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: Original cost Useful life Current age Remaining useful life Accumulated depreciation Book value Current disposal value (in cash) Old Machine $10,900 New Machine $8,200 10 years 3 years 7 years 0 years 3 years 3 years $7,630 Not acquired yet $3,270 Not acquired yet $2,700 Not acquired yet Terminal disposal value (5 years from now) $0 $0 Annual cash operating costs $17,500 $14,500 LF Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes. Calculate the total relevant costs to keep or replace the old machine. Should LF Manufacturing replace the old machine? 1. Calculate the relevant cost per unit to continue making CB76 and the relevant cost per unit to 1 purchase CB76. Should Davanit accept Peach's offer? (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab or if you type the numbers in, you will be marked wrong.) 234565 Relevant cost per unit to continue making CB76 5 Relevant cost per unit to purchase CB76 6 Should Robinson accept Peach's offer? No 2. Calculate the total relevant costs to keep or replace the old machine. Should LF Manufacturing 8 replace the old machine? (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab or if you type the numbers in, you will be marked wrong.) 9 10 11 Total relevant costs to keep the old machine 12 Total relevant costs to replace the old machine 13 Should RT Manufacturing replace the old machine? Yes