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 S80 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 S100. HT Electronics offers to supply 5,100 units of CB76 for $270. If Dowling buys 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. 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 costs between the choices, HT's offer price is V than the cost to continue to produce.
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 S80 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 S100. HT Electronics offers to supply 5,100 units of CB76 for $270. If Dowling buys 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. 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 costs between the choices, HT's offer price is V than the cost to continue to produce.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter17: Activity Resource Usage Model And Tactical Decision Making
Section: Chapter Questions
Problem 18E: A company is considering a special order for 1,000 units to be priced at 8.90 (the normal price...
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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 costs between the choices, HT's offer price is
than the cost to continue to produce.
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