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Answer the following questions Required 1. Dickinson Computers makes 5 200 units of a circuit board, CB76, at a cost of $290 each. Variable cost

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Answer the following questions Required 1. Dickinson Computers makes 5 200 units of a circuit board, CB76, at a cost of $290 each. Variable cost per unit is $220 and fixed cost per unit is $70. HT Electronics offers to supply 5.200 units of CB76 for $275. Dickinson buys from HT it will be able to save $15 per unit of fixed costs but continue to incur the remaining $55 per unit. Should Dickinson accept HT's offer? Explain 2. WS Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: Click the icon to view the information) ws Manufacturing uses straight-line amortization. Ignore the time value of money and income taxes. Should WS replace the old machine? Explain Requirement 1. Dickinson Computers makes 5.200 units of a circuit board, C876, at a cost of $200 each. Variable cost per unit is $220 and fixed cost per unit is $70, HT Electronics offers to supply 5,200 units of CB76 for $275. I Dickinson buys from HT it will be able to save $15 por unit of fixed costs but continue to incur the remaining $55 per unit should Dickinson accept HT's offer? Explain Begin by calculating the relevant cost per unit. (Only complete the necessary answer boxes) Begin by calculating the relevant cost per unit. (Only complete the necessary answer boxes.) Make Buy Relevant costs: Requirement 1. Dickinson Computers makes 5,200 units of a circuit board, CB76, at a cost of $290 each. Variable cost per unit is $220 and fixed cost per unit is $70, HT Electronics offers to supply 5,200 units of CB76 for $275. If Dickinson buys from HT it will be able to save $15 per unit of fixed costs but continue to incur the remaining $55 per unit. Should Dickinson accept HT's offer? Explain Begin by calculating the relevant cost per unit. (Only complete the necessary answer boxes.) Buy Make Relovant costs Unit relevant cost Answer the following questions . 4 Dickinson Computers should produce HT's offer. When comparing relevant costs between the choices, HT's offer price is than the cost to continue to Requirement 2. WS Manufacturing uses straight-line amortization. Ignore the time value of money and income taxes. Should WS replace the old machine? Explain Begin by calculating the total relevant costs. (Only complete the necessary answer boxes. Use parentheses or a minus sign for numbers to be subtracted) Keep Replace Difference Total rolavant costs produce Requirement 2. WS Manufacturing uses straight-line amortization. Ignore the time value of money and income taxes. Should WS replace the old machine? Explain Begin by calculating the total relevant costs. (Only complete the necessary answer boxes. Use parentheses or a minus sign for numbers to be subtracted.) Keep Replace Difference Total relevant costs WS Manufacturing should the old machine. The cost savings are than the cost to purchase the new machine 71 X Data table Sub estions Old Machine New Machine $ 10,100 $ 8,800 10 years 4 years makel HT Eled costs b decidi viewt 6 years 4 ses stra Original cost Useful life Current age Remaining useful life Accumulated amortization Book value Current disposal value in cash) Terminal disposal value (4 years from now) Annual cash operating costs $ years 6,060 4,040 2.300 0 years 4 years Not acquired yet Not acquired yet Not acquired yet $ 0 $ $ o $ 18,500 $ 14500 anufact be the old machine? Print Done

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