Answer the following questions. 1. Degler Computers makes 5,300 units of a circuit board, CB76 at a cost of $250 each Variable cost per unit is 5150 and fixed cost per unit is $100. Peach Electronics offers to supply 5,300 units of CB76 for $230. If Degler buys from Peach it will be able to save $25 per unit in fixed costs but continue to incur the remaining $75 per unit. Should Degler 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. Degler Computers makes 5,300 units of a circuit board, CB76 at a cost of $250 each. Variable cost per unit is $150 and fixed cost per unit is $100. Peach Electronics offers to supply 5,300 units of CB76 for $230. if Degler buys from Peach it will be able to save $25 per unit in fixed costs but continue to incur the remaining $75 per unit. Should Degler 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) Make Buy Relevant costs Unit relevant cost Degler Computers should Peach's offer. When comparing relevant costs between the choices, Peach's offer than the cost to continue to produce. price is 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 than the cost to the old machine. The cost to keep the machine is LN Manufacturing should replace the machine. tinn S offer? Explain tion: - i Data Table ILN t-line hachine 10 years 4 years npty, do Old Machine New Machine $ 10,900 $ Original cost 8,400 Useful life Current age 6 years 0 years Remaining useful life 4 years 4 years Accumulated depreciation $ 6,540 Not acquired yet Book value $ 4,360 Not acquired yet Current disposal value (in cash) $ 2.500 Not acquired yet Terminal disposal value (4 years from now) $ 0 $ 0 Annual cash operating costs $ 19,500 $ 14,000 vai st to Fact Print Done hem
