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 $2.0 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 Machine Annual fixed cost (depreciation) $151,000 $220,000 Variable cost per switch 0.35 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 (le, 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)2 (Do not round intermediate calculations. Round your final answer up to the nearest whole humber) Indifference point units/year 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 $2.0 per switch. As an alternative, Vista's CEO considered purchasing either machine Aor 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: Annual fixed cost (depreciation) Variable cost per switch Machine A $151,000 0.75 Machine B $220,000 0.35 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 (.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 extemat supplier 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 $2.0 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: Annual fixed cost (depreciation) Variable cost per switch Machine Machine B $151,000 $220,000 0.75 8.35 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 (ie, 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 vista consider replacing machine A with machine B? (Do not round Intermediate calculations. Round your final answer up to the nearest whole number.) Volume level units (per year)
