Vista Company manufactures electronic equipment. In 2018, it purchased from an outside supplier the special...

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Accounting

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 $2.6 per switch. As an alternative, Vistas 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 A Machine B
Annual fixed cost (depreciation) $ 141,000 $ 210,000
Variable cost per switch 0.60 0.25

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? image image image

Complete this question by entering your answers in the tabs below. Roured Required 2 Required 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 de purchasing and then using machine A to make the switches versus purchasing the Satches from the outside vender? (Do not found intermediate calculations. Round your final answer up to the nearest whole numbet) Interece port unity Required 2 > Complete this question by entering your answers in the tabs below. Required Required2 Required Assume that machine A has already been purchased. Is preferable to use machine A to make the switches or to purchase the switches from the external super? Our machine the che Purchase the switches tonele

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