Robinson Computers makes 5,700 units of a circuit board, CB76, 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: Old Machine New Machine $10,800 $8,800 Original cost Useful life 9 years 5 years Current age 4 years O years 5 years 5 years Remaining useful life Accumulated depreciation Not acquired yet Not acquired yet Not acquired yet Oales $4,800 Book value $6,000 $2,800 Current disposal value (in cash) Terminal disposal value (5 years from now) SO $0

Robinson Computers makes 5,700 units of a circuit board, CB76, 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: Old Machine New Machine $10,800 $8,800 Original cost Useful life 9 years 5 years Current age 4 years O years 5 years 5 years Remaining useful life Accumulated depreciation Not acquired yet Not acquired yet Not acquired yet Oales $4,800 Book value $6,000 $2,800 Current disposal value (in cash) Terminal disposal value (5 years from now) SO $0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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