Answer the following questions.

Davanit Computers makes $5,600$ units of a circuit board. CB$76$ at a cost of $$240$ each. Variable cost per unit is $$140$ and fixed cost per unit is $$100.$ Peach Electronics offers to supply $5,600$ units of CB$76$ for $$220.$ If Davanit 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 Davanit accept Peach's offer? Explain.

AP Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information:

$($Click the icon to view the information.$)$

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

Davanit Computers makes $5\mathrm{.}600$ units of a circuit board. CB$76$ at a cost of $$240$ each. Variable cost per unit is $$140$ and fixed cost per unit is $$100.$ Peach Electronics offers to supply $5,600$ units of CB$76$ for $$220.$ If Davanit 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 Davanit 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 $$

Data table

$\backslash$table$[[,$Old Machine,New Machine,$],[$Original cost$,$$$10,500,$$$,8\mathrm{.}000],[$Useful life,$12$ years,$3$ years,$],[$Current age,$9$ years,$0$ years,$],[$Remaining useful life,$3$ years,$3$ years,$],[$Accumulated depreciation,$$7\mathrm{.}875,$Not acquired yet,$],[$Book value,$$2\mathrm{.}825,$Not acquired yet,$],[$Current disposal value $($in cash$),$$$2\mathrm{.}500,$Not acquired yet,$],[$Terminal disposal value $(3$ years from now$),$$$0,$$$,0],[$Annual cash operating costs,$$19\mathrm{.}000,$$$,13\mathrm{.}500]]$