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Answer the following questions. 1. Douglas Computers makes 5.700 units of a circuit board, CB76 at a cost of $210 sach. Variable cost per unit
Answer the following questions. 1. Douglas Computers makes 5.700 units of a circuit board, CB76 at a cost of $210 sach. Variable cost per unit is $170 and fixed cost per unit is $40. Peach Electronics offers to supply 5.700 units of CB76 for $190. If Douglas buys from Peach it will be able to save $15 per unit in fixed costs but continue to incur the remaining $25 per unit. Should Douglas accept Peach's offer? Explain. 2. WS Manufacturing is deciding whether to keep or replace an old machine. It oblains the following information: (Click the icon to view the information.) WS Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes. Should WS Manufacturing replace the old machine? Explain. 1. Douglas Computers makes 5,700 units of a circuit board, C875 at a cost of $210 each. Variable cost per unit is $170 and fixed cost per unit is $40. Peach Electronics offers to supply 5,700 units of CB76 for $190. If Douglas buys from Peach it will be able to save $15 per unit in fixed costs but continue to incur the remaining $25 per unit. Should Douglas 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 emply; do not enter a zero.) Make Buy i Data Table Relevant costs: Unit relevant cost Old Machine New Machine Original cost S 10,900 $ 9,400 Useful life 10 years 3 years Current age 7 years 0 years Remaining useful lite 3 years 3 years Accumulated depreciation S S 7,630 Not acquired yet Book value S 3.270 Not acquired yet Current disposal value (in cash) S 2.900 Not acquired yet Terminal disposal value (3 years from now) 0 $ 0 0 Annual cash operating costs S ) $ 16,500 $ 15,500 Print Done Choose from any list or enter any number in the input fields and then click Check Answer. 2 3 parts Clear All remaining Check
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