DeCesare Computers makes 5,200 units of a circuit board, CB76, at a cost of $270 each....
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DeCesare Computers makes 5,200 units of a circuit board, CB76, at a cost of $270 each. Variable cost per unit is $180 and fixed cost per unit is $90. Peach Electronics offers to supply 5,200 units of CB76 for $250. If DeCesare buys from Peach it will be able to save $20 per unit in fixed costs but continue to incur the remaining $70 per unit. Should DeCesare accept Peach's offer? Explain. DeCesare Computers makes 5,200 units of a circuit board, CB76, at a cost of $270 each. Variable cost per unit is $180 and fixed cost per unit is $90. Peach Electronics offers to supply 5,200 units of CB76 for $250. If DeCesare buys from Peach it will be able to save $20 per unit in fixed costs but continue to incur the remaining $70 per unit. Should DeCesare accept Peach's offer? Explain.
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Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
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