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Answer the following questions. 1. Dickinson Computers makes 5,000 units of a circuit board, CB76 at a cost of $200 each. Variable cost per unit is $160 and fixed cost per unit is $40. Peach Electronics offers to supply 5,000 units of CB76 for $180. If Dickinson buys from Peach it will be able to save $25 per unit in fixed costs but continue to incur the remaining $15 per unit. Should Dickinson accept Peach's offer? Explain. $15 per unit. Snouia Dickinson accept reacn's ofer? 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.) Relevant costs: Unit relevant cost Dickinson Computers should Peach's offer price is **** Make Buy Peach's offer. When comparing relevant costs between the choices, than the cost to continue to produce.

Answer the following questions. 1. Dickinson Computers makes 5,000 units of a circuit board, CB76 at a cost of $200 each. Variable cost per unit is $160 and fixed cost per unit is $40. Peach Electronics offers to supply 5,000 units of CB76 for $180. If Dickinson buys from Peach it will be able to save $25 per unit in fixed costs but continue to incur the remaining $15 per unit. Should Dickinson accept Peach's offer? Explain. $15 per unit. Snouia Dickinson accept reacn's ofer? 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.) Relevant costs: Unit relevant cost Dickinson Computers should Peach's offer price is **** Make Buy Peach's offer. When comparing relevant costs between the choices, than the cost to continue to produce.

FINANCIAL ACCOUNTING
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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Answer the following questions. 1. Dickinson Computers makes 5,000 units of a circuit board, CB76 at a cost of $200 each. Variable cost per unit is $160 and fixed cost per unit is $40. Peach Electronics offers to supply 5,000 units of CB76 for $180. If Dickinson buys from Peach it will be able to save $25 per unit in fixed costs but continue to incur the remaining $15 per unit. Should Dickinson accept Peach's offer? Explain. $15 per unit. Snovia Dickinson accept reacn's ofer? 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.) Relevant costs: Unit relevant cost Dickinson Computers should Peach's offer price is www. Make Buy Peach's offer. When comparing relevant costs between the choices, than the cost to continue to produce.
Transcribed Image Text:Answer the following questions. 1. Dickinson Computers makes 5,000 units of a circuit board, CB76 at a cost of $200 each. Variable cost per unit is $160 and fixed cost per unit is $40. Peach Electronics offers to supply 5,000 units of CB76 for $180. If Dickinson buys from Peach it will be able to save $25 per unit in fixed costs but continue to incur the remaining $15 per unit. Should Dickinson accept Peach's offer? Explain. $15 per unit. Snovia Dickinson accept reacn's ofer? 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.) Relevant costs: Unit relevant cost Dickinson Computers should Peach's offer price is www. Make Buy Peach's offer. When comparing relevant costs between the choices, than the cost to continue to produce.
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