DowlingDowling

Computers makes

$5$ comma $0005,000$

units of a circuit$$ board, CB$76$ at a cost of

$ $210$$$210$

each. Variable cost per unit is

$ $140$$$140$

and fixed cost per unit is

$ $70$$$70.$

Peach Electronics offers to supply

$5$ comma $0005,000$

units of CB$76$ for

$ $190$$$190.$

If

DowlingDowling

buys from Peach it will be able to save

$ $25$$$25$

per unit in fixed costs but continue to incur the remaining

$ $45$$$45$

per unit. Should

DowlingDowling

accept$$ Peach's offer? Explain.

$2.$

APAP

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