ZuoTi.Pro
Question

Check my work Vista Company manufactures electronic equipment. In 2018, it purchased from an outside supplier the special swiRequired 1 Required 2 Required 3 Assume that machine A has not yet been purchased. What is the annual volume that would makeAssume that machine A has already been purchased. Is it preferable to use machine A to make the switches or to purchase the sAssume that machine A has already been purchased. At what annual volume level should Vista consider replacing machine A with

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1
Part-1
Purchase price from outside vendor:- $2.80
Manufacturing Cost
Annual fixed cost= $149000
Variable Cost per Switch=0.80
Breakeven Point or Indifference Point= Fixed Cost/( Outsider Price- Variable Cost)
=$149000/(2.80-0.80)=74500 Switches
Part-2: It's better to Use Machen A to makes the switches.
Part-3
Manufacturing Cost
Machine A:
Annual fixed cost:- No Relevant
Variable Cost per Switch:- $0.80
Machine B
Annual fixed cost= $218000
Variable Cost per Switch:- $0.20
Breakeven Point =218000/(0.80-0.20)
= 363333
2 0
Add a comment
Know the answer?
Add Answer to:
Check my work Vista Company manufactures electronic equipment. In 2018, it purchased from an outside supplier...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

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

    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 $2.5 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 A $148,000 Machine B Annual fixed cost (depreciation) Variable cost per switch...

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

    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 $2.4 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 A $155.000 0.85 Machine...

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

    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, 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 A $141,000 0.60 Machine...

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

    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 $2.9 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 A Annual fixed cost (depreciation) $ 144,000 Variable cost per switch 0.90...

  • Questions 1 to 3 for Vista Company Vista Company manufactures electronic equipment. In 2018, it purchased...

    Questions 1 to 3 for Vista Company 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 $2.3 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...

  • Chapter 11 Assignment i Saved Help Save & Exit Submit Check my work Vista Company manufactures electronic equipment...

    Chapter 11 Assignment i Saved Help Save & Exit Submit Check my work 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 $2.4 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:...

  • 11-26 Make versus Buy; Continuation of Exercise 9-22 m (Chapter 9 ) Vista Company manufactures electronic...

    11-26 Make versus Buy; Continuation of Exercise 9-22 m (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 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...

  • Question 1 CV Pte Ltd manufactures electronic calculators. Currently, CV purchases the special chip used to...

    Question 1 CV Pte Ltd manufactures electronic calculators. Currently, CV purchases the special chip used to manufacture its products from an outside supplier. The supplier charges CV $8 per chip. CV’s CEO is considering a proposal to purchase either machine A or machine B so that the company can manufacture its own chips. In addition, the outside supplier has informed CV that they will increase current prices by $2 per chip. The projected data on the two machines are as...

  • Check my work Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment....

    Check my work Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $30 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally: Direct materials...

  • “That old equipment for producing subassemblies is worn out,” said Bruce Truesdale, president of Truesdale Company....

    “That old equipment for producing subassemblies is worn out,” said Bruce Truesdale, president of Truesdale Company. “We need to make a decision quickly.” The company is trying to decide whether it should rent new equipment and continue to make its subassemblies internally, or whether it should discontinue production of its subassemblies and purchase them from an outside supplier. The alternatives follow:    Alternative 1: Rent new equipment for producing the subassemblies for $60,000 per year. Alternative 2: Purchase subassemblies from...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT