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  3. 1. degler computers makes 5,700 units of a circuit

1. Degler Computers makes 5,700 units of a circuit board, CB76 at a cost of...

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Accounting

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1. Degler Computers makes 5,700 units of a circuit board, CB76 at a cost of $290 each. Variable cost per unit is $160 and fixed cost per unit is $130. Peach Electronics offers to supply 5,700 units of CB76 for $270. If Degler buys from Peach it will be able to save $20 per unit in fixed costs but continue to incur the remaining $110 per unit. Should Degler accept Peach's offer? Explain. 1. Degler Computers makes 5,700 units of a circuit board, CB76 at a cost of $290 each. Variable cost per unit is $160 and fixed cost per unit is $130. Peach Electronics offers to supply 5,700 units of CB76 for \$270. If Degler buys from Peach it will be able to save $20 per unit in fixed costs but continue to incur the remaining $110 per unit. Should Degler 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.)

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