Answer the following questions. 1. Douglas Computers makes 5,800 units of a circuit board, CB76 at a cost of $290 each. Variable cost per unit is $200 and fixed cost per unit is $90. Peach Electronics offers to supply 5,800 units of CB76 for $270. If Douglas buys from Peach it will be able to save $15 per unit in fixed costs but continue to incur the remaining $75 per unit. Should Douglas accept Peach's offer? Explain. 2. WS Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: (Click the icon to view the information.) WS Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes. Should WS Manufacturing replace the old machine? Explain. 1. Douglas Computers makes 5,800 units of a circuit board, CB76 at a cost of $290 each. Variable cost per unit is $200 and fixed cost per unit is $90. Peach Electronics offers to supply 5,800 units of CB76 for $270. If Douglas buys from Peach it will be able to save $15 per unit in fixed costs but continue to incur the remaining $75 per unit. Should Douglas accept Peach's offer? Explain. Begin by calculating the relevant cost per unit. (If an input field is not used in the table, leave the input field empty, do not enter a zero.) Make Buy Relevant costs Unit relevant cost Old Machine New Machine Original cost $ 10,300 $ 9,000 Useful life 10 years 4 years Current age 6 years O years Remaining useful life 4 years 4 years Accumulated depreciation $ 6,180 Not acquired yet Book value $ 4,120 Not acquired yet Current disposal value (in cash) $ 2,100 Not acquired yet Terminal disposal value (4 years from now) $ 0 $ 0 Annual cash operating costs $ 18,000 $ 12,000 Print Done