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Only need help with part 3 151,428-151,430 not correct Vista Company manufactures electronic equipment. In 2018, it purchased from an outside supplier the special switches
Only need help with part 3 151,428-151,430 not correct
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 $2.4 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 B $208,000 Machine A Annual fixed cost (depreciation) Variable cost per switch $155,000 0.85 0.50 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 3 Required 2 Assume that machine A has already been purchased. At what annual volume level should Vista consider replacing machine A with machine B? (Do not round intermedia te calculations. Round your final answer up to the nearest whole number.) units (per year) Volume levelStep by Step Solution
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