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Answer the following questions. Required 1. Davanit Computers makes 5,000 units of a circuit board, CB76, at a cost of $280 each Variable cost per unit is $200 and fixed cost per unit is $80. HT Electronics offers to supply 5,000 units of CB76 for $250. If Davanit buys from HT it will be able to save $30 per unit of fixed costs but continue to incur the remaining S50 per unit. Should Davanit accept HT's offer? Explain 2. TX Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information (Click the icon to view the information.) TX Manufacturing uses straight-line amortization. Ignore the time value of money and income taxes. Should TX replace the old machine? Explain. i Data Table 376, a nits of ng $50 old Old Machine New Machine e time Original cost Useful life $ $ 8,400 10,300 years 10 4 Current age 6 years cuit be d cost 4 HT Electron Remaining useful life Accumulated amortization years 6,180 $ the ne Book value years 0 years 4 years Not acquired yet Not acquired yet Not acquired yet $ 0 $ 13,000 $ 4.120 2.000 Current disposal value (in cash) Terminal disposal value years from now) Annual cash operating costs $ $ 5 $ 0 20.500 Print Done and tem comme toue exeQUESTIONE Requirement 1. Davant Computers makes 5.000 units of a circuit board. C70, at a cost of 200 each with cost per unit 1200 and bed cost pel HT Eletters to supply 6.000 a 250 Davant buys from HT will be able to save 50 per unit of feed cost but continue to incut the remains print should want the forma Begin by calculating the relevant cost per unit (Only complete the news Maku Buy Relevant to Choose from a list of enter anyone the input files and then come to the next question Required 1. Davanit Computers makes 5,000 units of a circuit board, CB76, at a cost of $280 each Variable cost per unit is $200 and fixed cost per unit is $80. HT Electronics offers to supply 5,000 units of CB76 for $250. If Davanit buys from HT it will be able to save $30 per unit of fixed costs but continue to incur the remaining $50 per unit. Should Davant accept HT's offer? Explain 2. TX Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information (Click the icon to view the information) TX Manufacturing uses straight-line amortization. Ignore the time value of money and income taxes Should TX replace the old machine? Explain Make Buy Relevant costs Unit relevant cost Davanit Computers should HT's offer When comparing relevant costs between the choices, HT's offer price is than the cost to continue to produce How Required 1. Davanit Computers makes 5,000 units of a circuit board, CB76, at a cost of $280 each Variable cost per unit is $200 and fixed cost per unit is $80, HT Electronics offers to supply 5,000 units of CB76 for $250. Davanit buys from HT It will be able to save 530 per unit of fixed costs but continue to incur the remaining $50 per unit. Should Davant accept HT's offer? Explain 2. TX Manufacturing is deciding whether to keep or replace an old machine It obtains the following information Click the icon to view the information.) TX Manufacturing uses straight-line amortization. Ignore the time value of money and income taxes. Should TX replace the old machine? Explain Requirement 2. TX Manufacturing uses straight-line amortization. Ignore the time value of money and income taxes Should TX 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 Choose from any list or enter any number in the input fields and then continue to the next question 2. 1 Manutacturing is deciding whether to keep or replace an old machine. It obtains the following information: E!! (Click the icon to view the information) TX Manufacturing uses straight-line amortization, Ignore the time value of money and income taxes. Should TX 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 sub Keep Replace Difference Total relevant costs TX Manufacturing should the old machine. The cost savings are than the cost to purchase the new machine
