Answer the following questions. 1. Dietrich Computers makes 5,100 units of a circuit board, CB76...
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Answer the following questions. 1. Dietrich Computers makes 5,100 units of a circuit board, CB76 at a cost of $290 each. Variable cost per unit is $190 and fixed cost per unit is $100. Peach Electronics offers to supply 5,100 units of CB76 for $270. If Dietrich buys from Peach it will be able to save $15 per unit in fixed costs but continue to incur the remaining $85 per unit. Should Dietrich accept Peach'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 depreciation. Ignore the time value of money and income taxes. Should TX Manufacturing replace the old machine? Explain. 1. Dietrich Computers makes 5,100 units of a circuit board, CB76 at a cost of $290 each. Variable cost per unit is $190 and fixed cost per unit is $100. Peach Electronics offers to supply 5,100 units of CB76 for $270. If Dietrich buys from Peach it will be able to save $15 per unit in fixed costs but continue to incur the remaining $85 per unit. Should Dietrich accept Peach's offer? Explain. Begin by calculating the relevant cost per unit. (If an input field is not used in the table, leave the input field empty; do not enter a zero.) 2. TX Manufacturing is deciding whether to keep or replace an old machine. TX Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes. Should TX Manufacturing replace the old machine? Explain. Begin by calculating the total relevant costs. (If an input field is not used in the table, leave the input field empty; do not enter a zero. Use parentheses or a minus sign for numbers to be subtracted.)
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