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the following questions. 1. Dowling Computers makes 5,800 units of a circuit board, CB76 at a cost of $200 each. Variable cost per unit is
the following questions. 1. Dowling Computers makes 5,800 units of a circuit board, CB76 at a cost of $200 each. Variable cost per unit is $150 and fixed cost per unit is $50. Peach Electronics offers to supply 5,800 units of CB76 for $180. If Dowling buys from Peach it will be able to save $20 per unit in fixed costs but continue to incur the remaining $30 per unit. Should Dowling accept Peach's offer? Explain. 1. Dowling Computers makes 5,800 units of a circuit board, CB76 at a cost of $200 each. Variable cost per unit is $150 and fixed cost per unit is $50. Peach Electronics offers to supply 5,800 units of CB76 for $180. If Dowling buys from Peach it will be able to save $20 per unit in fixed costs but continue to incur the remaining $30 per unit. Should Dowling accept Peach's offer? Explain. Begin by calculating the relevant cost per unit. (If a box is not used in the table, leave the box empty; do not enter a zero.) Relevant costs: Unit relevant cost Dowling Computers should cost to continue to produce. Make Buy Peach's offer. When comparing relevant costs between the choices, Peach's offer price is than the Choose from any list or enter any number in the input fields
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