Answer the following questions.

Degler Computers makes $5,100$ units of a circuit board, CB$76$ at a cost of $$280$ each. Variable cost per unit is $$210$ and fixed cost per unit is $$70.$ Peach Electronics offers to supply $5,100$ units of CB$76$ for $$260.$ If Degler buys from Peach it will be able to save $$25$ per unit in fixed costs but continue to incur the remaining $$45$ per unit. Should Degler accept Peach's offer? Explain.

Degler Computers makes $5,100$ units of a circuit board, CB$76$ at a cost of $$280$ each. Variable cost per unit is $$210$ and fixed cost per unit is $$70.$ Peach Electronics offers to supply $5,100$ units of CB$76$ for $$260.$ If Degler buys from Peach it will be able to save $$25$ per unit in fixed costs but continue to incur the remaining $$45$ per unit. Should Degler accept Peach's offer? 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.$)$

Make Buy

Relevant costs:

Unit relevant cost

DeglerComputers should

Peach's offer. When comparing relevant costs between the choices, Peach's offer price is than the cost to continue to produce.