I have provided screenshot of both the mini case and the question to have a thorough understanding of the question.

Assignment #8 (Chapter 11) 0 Saved 3 Help Vista Company manufactures electronic equipment. In 2018, it purchased from an outside supplier the special switches used in each of its products. The supplier charged Vista $2.2 per switch. As an alternative, Vista's CEO considered purchasing either machine A or machine B so the company could manufacture its own switches. The CEO decided at the beginning of 2019 to purchase machine A, based on the following data: Machine A Machine B Annual fixed cost (depreciation) $145,000 $206,000 Variable cost per switch 0.75 0.40 l Required: 1. Assume that machine A has not yet been purchased. What is the annual volume that would make the company indifferent between the two decision alternatives (i.e., purchasing and then using machine A to make the switches versus purchasing the switches from the outside vendor)? 2. Assume that machine A has already been purchased. Is it preferable to use machine A to make the switches or to purchase the switches from the external supplier? 3. Assume that machine A has already been purchased. At what annual volume level should Vista consider replacing machine A with machine B? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume that machine A has not yet been purchased. What is the annual volume that would make the company indifferent between the two decision alternatives (i.e., purchasing and then using machine A to make the switches versus purchasing the switches from the outside vendor)? (Do not round intermediate calculations. Round your final answer up to the nearest whole number.) Required 2 > Save & Exit Assignment #8 (Chapter 11) i Saved Help Save & Ex 3 Vista Company manufactures electronic equipment. In 2018, it purchased from an outside supplier the special switches used in each of its products. The supplier charged Vista $2.2 per switch. As an alternative, Vista's CEO considered purchasing either machine A or machine B so the company could manufacture its own switches. The CEO decided at the beginning of 2019 to purchase machine A, based on the following data: Machine A Machine B Annual fixed cost (depreciation) $145 , 000 $206, 000 Variable cost per switch 0. 75 0.40 Required: 1. Assume that machine A has not yet been purchased. What is the annual volume that would make the company indifferent between the two decision alternatives (i.e., purchasing and then using machine A to make the switches versus purchasing the switches from the outside vendor)? 2. Assume that machine A has already been purchased. Is it preferable to use machine A to make the switches or to purchase the switches from the external supplier? 3. Assume that machine A has already been purchased. At what annual volume level should Vista consider replacing machine A with machine B? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume that machine A has already been purchased. Is it preferable to use machine A to make the switches or to purchase the switches from the external supplier? Use machine A to make the switches. Purchase the switches from the external supplier. Assignment #8 (Chapter 11) 0 Saved Help 3 Vista Company manufactures electronic equipment. In 2018, it purchased from an outside supplier the special switches used in each of its products, The supplier charged Vista $2.2 per switch. As an alternative. Vista's CEO considered purchasing either machine A or machine B so the company could manufacture its own switches. The CEO decided at the beginning of 2019 to purchase machine A, based on the following data: Machine A Machine B Annual fixed cost (depreciation) $145,000 $206,000 Variable cost per switch 0.75 0.40 I Required: 1. Assume that machine A has not yet been purchased. What is the annual volume that would make the company indifferent between the two decision alternatives (i.e., purchasing and then using machine A to make the switches versus purchasing the switches from the outside vendor)? 2. Assume that machine A has already been purchased. Is it preferable to use machine A to make the switches or to purchase the switches from the external supplier? 3. Assume that machine A has already been purchased. At what annual volume level should Vista consider replacing machine A with machine B? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume that machine A has already been purchased. At what annual volume level should Vlsta consider replacing machine A with machine B? (Do not round intermediate calculations. Round your nal answer up to the nearest whole number.) units (per year) Save 8. Exit Submit Assignment #8 (Chapter 11) 0 Saved Help 4 Barbour Corporation, located in Buffalo, New York, is a retailer of high-tech products and is known for its excellent quality and innovation. Recently, the rm conducted a relevant cost analysis of one of its product lines that has only two products, T4 and T-2. The sales for T2 are decreasing and the purchase costs are increasing. The firm might drop T-2 and sell only T1. Barbour allocates fixed costs to products on the basis of sales revenue. When the president of Barbour saw the income statements (see below), he agreed that T-2 should be dropped. If T-2 is dropped, sales of T4 are expected to increase by 10% next year, but the rm's cost structure will remain the same. T1 T2 Sales $235,000 $288,000 Variable costs: Cost of goods sold 77,000 144,000 Selling & administrative 17,000 57,000 Contribution margin $141,000 $ 87,000 Fixed expenses: Fixed corporate costs 67,000 82,000 Fixed selling and administrative 19,000 28,000 Total fixed expenses $ 86,000 $110,000 Operating income $ 55,000 $(23,000) l Required: 1. Find the expected change in annual operating income by dropping T2 and selling only T4. 2. By what percentage would sales from T4 have to increase in order to make up the nancial loss from dropping T-2? (Enter your answer as a percentage rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) 3. What is the required percentage increase in sales from T4 to compensate for lost margin from T-2, if total xed costs can be reduced by $50,000? (Enter your answer as a percentage rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) Required % increase in sales of T1 Required % increase in sales from T-1 Save & Exit Submit