Answer the following questions. 1. Dowling Computers makes 5,300 units of a circuit board, CB76 at a cost of $290 each. Variable cost per unit is $150 and fixed cost per unit is $140. Peach Electronics offers to supply 5,300 units of CB76 for $270. If Dowling buys from Peach it will be able to save $25 per unit in fixed costs but continue to incur the remaining $115 per unit. Should Dowling accept Peach's offer? Explain. 2. RT Manufacturing

Answer the following questions. 1. Dowling Computers makes 5,300 units of a circuit board, CB76 at a cost of $290 each. Variable cost per unit is $150 and fixed cost per unit is $140. Peach Electronics offers to supply 5,300 units of CB76 for $270. If Dowling buys from Peach it will be able to save $25 per unit in fixed costs but continue to incur the remaining $115 per unit. Should Dowling accept Peach's offer? Explain. 2. RT Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: (Click the icon to view the information.) RT Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes. Should RT Manufacturing replace the old machine? Explain. 1. Dowling Computers makes 5,300 units of a circuit board, CB76 at a cost of $290 each. Variable cost per unit is $150 and fixed cost per unit is $140. Peach Electronics offers to supply 5,300 units of CB76 for $270. If Dowling buys from Peach it will be able to save $25 per unit in fixed costs but continue to incur the remaining $115 per unit. Should Dowling 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