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Or Answer the following questions makes 5,000 units of a circuit board, CB76 af a cost of $280 each Variable cost per unit is $170
Or Answer the following questions makes 5,000 units of a circuit board, CB76 af a cost of $280 each Variable cost per unit is $170 and fxed cost per unit is $110 Peach 1. Deibler Computers Electronics offers to supply 5,000 units of CB76 for $260. If Deibler buys from Peach it will be able to save 510 per unit in fxed costs but continue to incur the remaining $100 per unit Should Deibler accept Peach's offer? Explain 1. Deibler Computers makes 5,000 units of a circuit board, CB76 at a cost of $280 each, Variable cost per unit is $170 ad fxed cost per unit is S110, Peach h it will be able to save $10 per unit in fixed costs but continue to incur the remaining WalksthrouaElectronics offers to supply 5,000 units of CB76 for $260. If Deibler buys from Peac for problem $100 per unit. Should Deibler accept Peach's offer? Explain. Begin by calculating the relevant cost per unit (f a box is not used in the table, leave the box empty, do not enter a zero) Buy Make Relevant costs Variable costs per unit ] [Avoidable fixed costs per unit Purchase price per un 260 180 Unit relevant cost Deibler Computers should reject Peach's offer. When comparing relevant costs between the choices, Peach's offer price is higher than the cost to continue to produce
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