Answer the following questions. 1. Dowling Computers makes 5,800 units of a circuit board, CB76 at a cost of $280 each. Variable cost per unit is $180 and fixed cost per unit is $100. Peach Electronics offers to supply 5,800 units of CB76 for $260. If Dowling buys from Peach it will be able to save $25 per unit in fixed costs but continue to incur the remaining $75 per unit. Should Dowling accept Peach's offer? Explain. 2. LN Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: (Click the icon to view the information.) LN Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes. Should LN Manufacturing replace the old machine? Explain. 1. Dowling Computers makes 5,800 units of a circuit board, CB76 at a cost of $280 each. Variable cost per unit is $180 and fixed cost per unit is $100. Peach Electronics offers to supply 5,800 units of CB76 for $260. If Dowling buys from Peach it will be able to save $25 per unit in fixed costs but continue to incur the remaining $75 per unit. Should Dowling 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: Data table Unit relevant cost Old Machine New Machine Original cost $ 10,200 $ 9,400 Useful life 12 years 5 years Current age 7 years O years Remaining useful life 5 years 5 years Accumulated depreciation $ 5,950 Not acquired yet Book value $ 4,250 Not acquired yet $ 2,400 Current disposal value (in cash) Not acquired yet Terminal disposal value (5 years from now) $ 0 $ 0 Annual cash operating costs $ 19,000 13,000