Relevant and irrelevant costs. Answer the following questions.1. DeCesare 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 DeCesare 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 DeCesare accept Peach??s offer? Explain.2. LN Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information:

LN Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes.Should LN Manufacturing replace the old machine?Explain.

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Old Machine $10,700 New Machine $9,000 3 years O years 3 years Not acquired yet Not acquired yet Not acquired yet Original cost Useful life Current age Remaining useful life Accumulated depreciation Book value Current disposal value (in cash) Terminal disposal value (3 years from now) Annual cash operating costs 10 years 7 years 3 years $7,490 $3,210 $2,200 sO $17,500 $0 $15,500