answer in text form please (without image) Answer the following questions.1. Dickinson Computers makes 5,000 units of a circuit board, CB76 at a cost of $200 each. Variable cost per unitis $160 and fixed cost per unit is $40. Peach Electronics offers to supply 5,000 units of CB76 for $180. IfDickinson buys from Peach it will be able to save $25 per unit in fixed costs but continue to incur theremaining $15 per unit. Should Dickinson accept Peach's offer? Explain.$15 per unit. Snovia Dickinson accept reacn's ofer? Explain.Begin by calculating the relevant cost per unit. (If a box is not used in the table, leave the box empty; do not entera zero.)Relevant costs:Unit relevant costDickinson Computers shouldPeach's offer price iswww.MakeBuyPeach's offer. When comparing relevant costs between the choices,than the cost to continue to produce.

MAKE OR BUY DECISIONThe make-or-buy decision is choosing between manufacturing a product within a…

Answered: Answer the following questions. 1.…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...

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Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?
Answer the following questions. 1. Douglas Computers makes 5,900 units of a circuit board, CB76 at a cost of $220 each. Variable cost per unit is $170 and fixed cost per unit is $50. Peach Electronics offers to supply 5,900 units of CB76 for $200. If Douglas buys from Peach it will be able to save $20 per unit in fixed costs but continue to incur the remaining $30 per unit. Should Douglas accept Peach's offer? Explain. 1. Douglas Computers makes 5,900 units of a circuit board, CB76 at a cost of $220 each. Variable cost per unit is $170 and fixed cost per unit is $50. Peach Electronics offers to supply 5,900 units of CB76 for $200. If Douglas buys from Peach it will be able to save $20 per unit in fixed costs but continue to incur the remaining $30 per unit. Should Douglas 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 Douglas…
Answer the following questions. Required 1. Deibler Computers makes 5,600 units of a circuit board, CB76, at a cost of $210 each. Variable cost per unit is $150, and fixed cost per unit is $60. HT Electronics offers to supply 5,600 units of CB76 for $185. If Deibler buys from HT, it will be able to save $25 per unit of fixed costs but continue to incur the remaining $35 per unit. Should Deibler accept HT's offer? Explain. 2. QT Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: (Click the icon to view the information.) QT Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes. Should QT replace the old machine? Explain. A Requirement 1. Deibler Computers makes 5,600 units of a circuit board, CB76, at a cost of $210 each. Variable cost per unit is $150, and fixed cost per unit is $60. HT Electronics offers to supply 5,600 units of CB76 for $185. If Deibler buys from HT, it will be able to…
Answer the following questions. 1. Dalton Computers makes 5,500 units of a circuit board, CB76 at a cost of $250 each. Variable cost per unit is $170 and fixed cost per unit is $80. Peach Electronics offers to supply 5,500 units of CB76 for $230. If Dalton buys from Peach it will be able to save $15 per unit in fixed costs but continue to incur the remaining $65 per unit. Should Dalton accept Peach's offer? Explain. 2. TX Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: (Click the icon to view the information.) TX Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes. Should TX Manufacturing replace the old machine? Explain. Relevant COSIS. Variable costs per unit Avoidable fixed costs per unit Purchase price per unit Unit relevant cost Cash operating costs Current disposal value of old machine Cost of new machine $ Total relevant costs 170 15 $ 185 $ 230 230 Dalton Computers should…
DeCesare Computers makes 5000 units of a circuit board, CB76 at a cost of $280 each. Variable cost per unit is $170 and fixed cost per unit is $110. Peach Electronics offers to supply 5000 units of CB76 for $260. If buys from Peach it will be able to save $15 per unit in fixed costs but continue to incur the remaining $95 per unit. Should DeCesare accept Peach's offer? Explain. TX Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: Old Machine New Machine Original cost $10,400 $9,200 Useful life 13 years 3 years Current age 10 years 0 years Remaining useful life 3 years 3 years Accumulated depreciation $8,000 Not acquired yet Book value $2,400 Not acquired yet Current disposal value (in cash) $2,000 Not acquired yet Terminal disposal value (3 years from now) $0…
Answer the following question Required Dowling Computers makes 5,100 units of a circuit board, CB76, at a cost of $290 each. Variable cost per unit is $190 and fixed cost per unit is $100. HT Electronics offers to supply 5,100 units of CB76 for $270. If Dowling buys from HT it will be able to save $20 per unit of fixed costs but continue to incur the remaining $80 per unit. Should Dowling accept HT's offer? Explain. Dowling Computers makes 5.100 units of a circuit board, CB76, at a cost of $290 each. Variable cost per unit is $190 and fixed cost per unit is $100, HT Electronics offers to supply 5.100 units of CB76 for $270, If Dowling buys from HT it will be able to save $20 per unit of fixed costs but continue to incur the remaining Ş80 per unit. Should Dowling accept HT's offer? Explain. Begin by calculating the relevant cost per unit. (Only complete the necessary answer boxes.) Make Buy Relevant costs: Unit relevant cost Dowling Computers should V HT's offer. When comparing relevant…
Robinson Computers makes 5,700 units of a circuit board, CB76, at a cost of $230 each. Variable cost per unit is $180 and fixed cost per unit is $50. Peach Electronics offers to supply 5,700 units of CB76 for $210. If Robinson buys from Peach, it will be able to save $20 per unit in fixed costs but continue to incur the remaining $30 per unit. Should Robinson accept Peach’s offer? Explain.
Vista Company manufactures electronic equipment. It currently purchases the special switches used in each of its products from an outside supplier. The supplier charges Vista $5.50 per switch. Vista's CEO is considering purchasing either machine A or machine B so the company can manufacture its own switches. The projected data are as follows: Annual fixed costs Variable cost per switch Machine A $632,400 1.78 Required: 1. For each machine, what is the minimum number of switches that Vista must make annually for total costs to equal outside purchase cost? 2. What volume level would produce the same total costs regardless of the machine purchased? 3. What is the most profitable alternative for producing 235,000 switches per year and what is the total cost of that alternative? Required 1 Required 2 Required 3 Complete this question by entering your answers in the tabs below. Machine B $ 860,100 0.80 Minimum number of switches For each machine, what is the minimum number of switches that…
Relevant and irrelevant costs: 1. DeCesare Computers makes 5,200 units of a circuit board, CB76 at a cost of $280 each. Variable cost per unit is $190 and fixed cost per unit is $90. Peach Electronics offers to supply 5,200 units of CB76 for $260. If DeCesare buys from Peach it will be able to save $10 per unit in fixed costs but continue to incur the remaining $80 per unit. Should DeCesare accept Peach’s offer? Explain. 2. LN Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: Old Machine New Machine Original cost $10,700 $9,000 Useful life 10 years 3 years Current age 7 years 0 years Remaining useful life 3 years 3 years Accumulated depreciation $7,490 Not acquired yet Book value $3,210 Not acquired yet Current disposal value (in cash ) $2,200 Not acquired yet Terminal disposal value (3 years from now) $0 $0 Annual cash operating costs $17,500…
Holiday Corp. has two divisions, Quail and Marlin. Quail produces a widget that Marlun could use in its production. Quail's variable costs are $5.80 per widget while the full cost is $8.80. Widgets sell on the open market for $15.6 each. If Quail has excess capacity, what would be the minimum transfer price if Marlin is purchasing 190000 units on the open market? a) $5.8 b) $8.8 c) $15.6 d) $6.8
Vista Company manufactures electronic equipment. It currently purchases the special switches used in each of its products from an outside supplier. The supplier charges Vista $1.45 per switch. Vista’s CEO is considering purchasing either machine A or machine B so the company can manufacture its own switches. The projected data are as follows: Machine A Machine B Annual fixed costs $ 108,900 $ 145,000 Variable cost per switch 0.46 0.20 Required: 1. For each machine, what is the minimum number of switches that Vista must make annually for total costs to equal outside purchase cost? 2. What volume level would produce the same total costs regardless of the machine purchased? 3. What is the most profitable alternative for producing 150,000 switches per year and what is the total cost of that alternative?
Relevant and irrelevant costs. Answer the following questions. Robinson Computers makes 5,700 units of a circuit board, CB76, at a cost of $230 each. Variable cost per unit is $180 and fixed cost per unit is $50. Peach Electronics offers to supply 5,700 units of CB76 for $210. If Robinson buys from Peach, it will be able to save $20 per unit in fixed costs but continue to incur the remaining $30 per unit. Should Robinson accept Peach’s offer? Explain. RT Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information:

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