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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
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 $ per switch. VIsta's CEO is considering purchasing elther machine A or machine B so
the company can manufacture its own switches. The projected data are as follows:
Required:
For each machine, what is the minimum number of switches that Vista must make annually for total costs to equal outside purchase
cost
What volume level would produce the same total costs regardless of the machine purchased?
What is the most profitable alternative for producing switches per year and what is the total cost of that alternative?
Complete this question by entering your answers in the tabs below.
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.
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