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Answer the following questions. 1. DeCesare Computers makes 5,900 units of a circuit board, CB76 at a cost of $260 each. Variable cost per
Answer the following questions. 1. DeCesare Computers makes 5,900 units of a circuit board, CB76 at a cost of $260 each. Variable cost per unit is $220 and fixed cost per unit is $40. Peach Electronics offers to supply 5,900 units of CB76 for $240. If DeCesare buys from Peach it will be able to save $10 per unit in fixed costs but continue to incur the remaining $30 per unit. Should DeCesare accept Peach's offer? Explain. 2. AP Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: (Click the icon to view the information.) AP Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes. Should AP Manufacturing replace the old machine? Explain. price is higher than the cost to continue to produce. 2. AP Manufacturing is deciding whether to keep or replace an old machine. AP Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes. Should AP 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.) Total relevant costs Keep Replace Difference
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