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Answer the following questions, 1. Douglas Computers makes 5.600 units of a circuit board, CB76 at a cost of $260 each. Variable cost per unit is $230 and fixed cost per unit is $30. Peach Electronics offers to supply 5,600 units of CB76 for $240. I Douglas buys from Peach it will be able to save $25 per unit in fixed costs but continue to incur the remaining $5 per unit. Should Douglas accept Peach's offer? Explain. 2. AH Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: (Click the icon to view the information AH Manufacturing uses straight-line depreciation, Ignore the time value of money and income taxes. Should AH Manufacturing replace the old machine? Explain. 1. Douglas Computers makes 5,600 units of a circuit board, CB76 at a cost of $260 each. Variable cost per unit is $230 and fixed cost per unit is $30. Peach Electronics offers to supply 5,600 units of CB76 for $240. If Douglas buys from Peach it will be able to save $25 per unit in fixed costs but continue to incur the remaining $5 per unit. Should Douglas 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 Direct materials $ 8 Variable direct manufacturing labor 27 Variable manufacturing overhead 16 Fixed manufacturing overhead allocated 21 $ 72 Total manufacturing cost per unit The Acre Company has offered to sell 10,000 units of Part No. 498 to Houston for $68 per unit. Houston will make the decision to buy the part from Acre if there is an overall savings of at least $20,000 for Houston. If Houston accepts Acre's offer, $8 per unit of the fixed overhead allocated would be eliminated. Furthermore, Houston has determined that the released facilities could be used to save relevant costs in the manufacture of Part No. 575. Print Done