Po Answer the following questions. 1. Damico Computers makes 5,200 units of a circuit board,...

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Po Answer the following questions. 1. Damico Computers makes 5,200 units of a circuit board, CB76 at a cost of $280 each. Variable cost per unit is $190 and fixed cost per unit is $90. Peach Electronics offers to supply 5,200 units of CB76 for $260. If Damico buys from Peach it will be able to save $10 per unit in fixed costs but continue to incur the remaining $80 per unit. Should Damico accept Peach's offer? Explain. 1. Damico Computers makes 5,200 units of a circuit board, C876 at a cost of $280 each. Variable cost per unit is $190 and fixed cost per unit is $90. Peach Electronic offers to supply 5,200 units of CB76 for $260. If Damico buys from Peach it will be able to save $10 per unit in fixed costs but continue to incur the remaining $80 per unit. Should Damico 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.) Make Buy Relevant costs: Variable costs per unit Avoidable fixed costs per unit 90 190 Purchase price per unit Unit relevant cost Damico Computers should produce Peach's offer. When comparing relevant costs between the choices, Peach's offer price is than the cost to continue to

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