(Solution) - Relevant and irrelevant costs Answer the following questions 1 -(2025 Original AI-Free Solution)

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Relevant and irrelevant costs. Answer the following questions.
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:

LN Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes.
Should LN Manufacturing replace the old machine?Explain.