Vista Company manufactures electronic equipment. In it purchased from an outside supplier the special switches used in each of
its products. The supplier charged Vista $ 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 to purchase machine A
based on the following data:
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 ie purchasing and then using machine A to make the switches versus purchasing the switches from the
outside vendor
Assume that machine A has already been purchased. Is it preferable to use machine to make the switches or to purchase the
switches from the external supplier?
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
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 ie purchasing and then using machine A to make the switches versus purchasing the
switches from the outside vendorDo not round intermediate calculations. Round your final answer up to the nearest whole
number.Required
Required
Required
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 external supplier.Assume that machine A has already been purchased. At what annual volume level should Vista consider replacing machine A
with machine BDo not round intermediate calculations. Round your final answer up to the nearest whole number.