Solution-What is the minimum number of switches that vista

What is the minimum number of switches that vista must make

Assignment Help Accounting Basics

Reference no: EM132677673

Question - 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 $2.50 per switch. Vista's CEO is considering purchasing either machine A or machine B so the company can manufacture its own switches. The projected data are as follows:

	Machine A	Machine B
Annual fixed costs	$213,750	$284,875
Variable cost per switch	0.79	0.35

Required -

1. For each machine, what is the minimum number of switches that Vista must make annually for total costs to equal outside purchase cost?

2. What volume level would produce the same total costs regardless of the machine purchased?

3. What is the most profitable alternative for producing 165,000 switches per year and what is the total cost of that alternative?

Reference no: EM132677673

Questions Cloud

Which fees receivable would appear on the balance sheet as a : A&M Co. provided services of $1,000,000 to clients on account. How does this transaction affect A&M's accounts? Unearned revenue is what type of an account?

Calculate stan net unearned income : Stan has interest income of $4,500. No election is made to include Stan's income on Brian and Kim's return. Calculate Stan's net unearned income

Describe each of the three sources of information : No two websites are developed the same, but there are likely timelines and best practices. Phrases I would focus on would be customer-focussed, user-focussed.

What impact can malware have on organization : What impact can malware have on an organization. What relationship does it have with malware?

What is the minimum number of switches that vista must make : For each machine, what is the minimum number of switches that Vista must make annually for total costs to equal outside purchase cost

Which an entity that is organized according to state statute : Which an entity that is organized according to state or federal statutes and which ownership is divided into shares of stock is a?

Contingency planning is risk mitigation process : Contingency planning is a risk mitigation process for developing back-up plans in anticipation of events (scenarios) that might disrupt ‘business as usual'.

Why a quality data model is needed : Why a quality data model is needed? Explain QDM's importance in healthcare information system using examples you have seen or discussed in this Module's.

Internet-related crime occurs every minute : Internet-related crime occurs every minute. Cybercriminals steal millions of dollars with near impunity.

User Account

All Pages

What is the minimum number of switches that vista must make

Reference no: EM132677673

Reference no: EM132677673

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT