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Q2. I 10% of test] DeCesare Computers makes 5,200 units of a circuit board, CB76,...

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Accounting

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Q2. I 10% of test] DeCesare Computers makes 5,200 units of a circuit board, CB76, at a cost of$270 each. Variable cost per unit is $180 and fixed cost per unit is S90. Peach Electronics offers to supply 5,200 units of CB76 for $250. If DeCesare buys from Peach it will be able to save $20 per unit in fixed costs but continue to incur the remaining $70 per unit. Should DeCesare accept Peach's offer? Explain. Q3. [ 10% of test] The Howell Company has prepared a sales budget of 30,000 finished units for a 3- month period. The company has an inventory of 9,000 units of finished goods on hand at December 31 and has a target finished goods inventory of 11,000 units at the end of the succeeding quarter. It takes 5 gallons of direct materials to make one unit of finished product. The company has an inventory of 56,000 gallons of direct materials at December 31 and has a target ending inventory of 66,000 gallons at the end of the succeeding quarter. How many gallons of direct materials should Howell Company purchase during the 3 months ending March 31

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