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please solve all the questions, thanks. [LO 11-3] 11-26 Make versus Buy; Continuation of Exercise 9-22 (Chapter 9) Vista Company manufactures electronic equipment. In 2018,

please solve all the questions, thanks. image text in transcribed
[LO 11-3] 11-26 Make versus Buy; Continuation of Exercise 9-22 (Chapter 9) 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 per switch. As an alternative, Vista's CEO consid- ered 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) Variable cost per switch $135,000 0.65 $204,000 0.30 Required 1. Assume that machine A has not yet been purchased. What is the annual volume (rounded up to near- est whole number) 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 (rounded to the nearest whole number) should Vista consider replacing machine A with machine B? 4. Use the Goal Seek function in Excel to confirm the volume-indifference level you calculated in requirement 3

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