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Answer the following questions. 1. Damico Computers makes 5,000 units of a circuit board, CB76 at a cost of $230 each. Variable cost per unit
Answer the following questions. 1. Damico Computers makes 5,000 units of a circuit board, CB76 at a cost of $230 each. Variable cost per unit is S150 and fixed cost per unit is $80. Peach Electronics offers to supply 5,000 units of CB76 for $210. If Damico buys from Peach it will be able to save $20 per unit in fixed costs but continue to incur the remaining $60 per unit. Should Damico accept Peach's offer? Explain 1. Damico Computers makes 5,000 units of a circuit board, CB76 at a cost of $230 each. Variable cost per unit is $150 and fixed cost per unit is S80. Peach Electronics offers to supply 5,000 units of CB76 for $210. If Damico buys from Peach it will be able to save $20 per unit in fixed costs but continue to incur the remaining $60 per unit. Should Damico accept Peach's offer? Explain Begin by calculating the relevant cost per unit. (If a box is not used in the table, leave the box empty, do not enter a zero.) Make Buy Relevant costs Unit relevant cost Damico Computers should Peach's offer. When comparing relevant costs between the choices, Peach's offer price is than he cost o con nue o produce
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