Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show all work Annual fixed costs 5.507,000 Vista Company manufactures electronic equipment. It currently purchases the special switches used in each of its products

please show all work
image text in transcribed
image text in transcribed
image text in transcribed
Annual fixed costs 5.507,000 Vista Company manufactures electronic equipment. It currently purchases the special switches used in each of its products from an outside supplier. The supplier charges Vista 53,80 per switch. Vista's CEO is considering purchasing either machine A or machine B so the company can manufacture its own switches. The projected data are as follows: Machine Machine $ 372,650 Variable cost per switch 1.23 0.55 Required: 1. For each machine what is the minimum number of switches that Vista must make annually for total costs to equal outside purchase cost? 2 What volume level would produce the same total costs regardless of the machine purchased? 3. What is the most profitable alternative for producing 200,000 switches per year and what is the total cost of that alternative? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For each machine, what is the minimum number of switches that Vista must make annually for total costs to equal outside purchase cost? (Do not round intermediate calculations.) Machine A Machine Minimum number of switches Required 2 > Annual fixed costs Variable cost per switch Machine A $ 372,650 1.23 Machine B $ 507,000 0.55 Required: 1. For each machine, what is the minimum number of switches that Vista mus cost? 2. What volume level would produce the same total costs regardless of the n 3. What is the most profitable alternative for producing 200.000 switches ner Required: For each machine, what is the minimum number of switches that Vista must make annually for total costs to equal outside purchase kost? 2. What volume level would produce the same total costs regardless of the machine purchased? 3. What is the most profitable alternative for producing 200,000 switches per year and what is the total cost of that alternative? Complete the nnectinn hantarina

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Investments Fixed Income Securities And Interest Rate Derivatives Volume 2

Authors: R. Venkata Subramani

1st Edition

047082591X, 978-0470825914

More Books

Students also viewed these Accounting questions