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the following questions. Required 1. Damico Computers makes 5,200 units of a circuit board, CB76, at a cost of $200 each. Variable cost per unit
the following questions. Required 1. Damico Computers makes 5,200 units of a circuit board, CB76, at a cost of $200 each. Variable cost per unit is $160, and fixed cost per unit is $40. HT Electronics offers to supply 5,200 units of CB76 for $175. If Damico buys from HT, it will be able to save $25 per unit of fixed costs but continue to incur the remaining $15 per unit. Should Damico accept HT's offer? Explain. 2. OK Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: (Click the icon to view the information.) OK Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes. Should OK replace the old machine? Explain. Requirement 1. Damico Computers makes 5,200 units of a circuit board, CB76, at a cost of $200 each. Variable cost per unit is $160, and fixed cost per $40. HT Electronics offers to supply 5,200 units of CB76 for $175. If Damico buys from HT, it will be able to save $25 per unit of fixed costs but continue to the remaining $15 per unit. Should Damico accept HT's offer? Explain. Begin by calculating the relevant cost per unit. (Only complete the necessary answer boxes.) Relevant costs: Unit relevant cost Make Buy
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