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Answer the following questions. 1. DeCesare Computers makes 5,400 units of a circuit board, CB76 at a cost of $230 each. Variable cost per unit
Answer the following questions. 1. DeCesare Computers makes 5,400 units of a circuit board, CB76 at a cost of $230 each. Variable cost per unit is $140 and fixed cost per unit is $90. Peach Electronics offers to supply 5,400 units of CB76 for $210. If DeCesare buys from Peach it will be able to save $25 per unit in fixed costs but continue to incur the remaining $65 per unit. Should DeCesare accept Peach's offer? Explain. 2. LN Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: (Click the icon to view the information.) LN Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes. Should LN Manufacturing replace the old machine? Explain. 1. DeCesare Computers makes 5,400 units of a circuit board, CB76 at a cost of $230 each. Variable cost per unit is $140 and fixed cost per unit is $90. Peach Electronics offers to supply 5,400 units of CB76 for $210. If DeCesare buys from Peach it will be able to save $25 per unit in fixed costs but continue to incur the remaining $65 per unit. Should DeCesare 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.) Data table
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