Answer the following question Required Dowling 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. HT Electronics offers to supply 5,100 units of CB76 for $270. If Dowling buys from HT it will be able to save $20 per unit of fixed costs but continue to incur the remaining S80 per unit. Should Dowling accept HT's offer? Explain. Dowling 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 S100. HT Electronics offers to supply 5,100 units of CB76 for $270. If Dowling buys HT it will be able to save $20 per unit of fixed costs but continue to incur the remaining $80 per unit. Should Dowling accept HT's offer? Explain. Begin by calculating the relevant cost per unit. (Only complete the necessary answer boxes.) Make Buy Relevant costs: Unit relevant cost Dowling Computers should V HT's offer. When comparing relevant costs between the choices, HT's offer price is V than the cost to continue to produce.

Answer the following question Required Dowling 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. HT Electronics offers to supply 5,100 units of CB76 for $270. If Dowling buys from HT it will be able to save $20 per unit of fixed costs but continue to incur the remaining S80 per unit. Should Dowling accept HT's offer? Explain. Dowling 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 S100. HT Electronics offers to supply 5,100 units of CB76 for $270. If Dowling buys HT it will be able to save $20 per unit of fixed costs but continue to incur the remaining $80 per unit. Should Dowling accept HT's offer? Explain. Begin by calculating the relevant cost per unit. (Only complete the necessary answer boxes.) Make Buy Relevant costs: Unit relevant cost Dowling Computers should V HT's offer. When comparing relevant costs between the choices, HT's offer price is V than the cost to continue to produce.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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