What is the minimum number of switches that Vista must make

Assignment Help Managerial Accounting
Reference no: EM133102702

Problem - 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 $4.20 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

$429,000

$579,600

Variable cost per switch

1.34

0.60

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 205,000 switches per year and what is the total cost of that alternative?

Reference no: EM133102702

Questions Cloud

Calculate Valerie minimum net income : For the 2021 taxation year, calculate Valerie's minimum net income before any RRSP deduc-tion. Ignore CPP contributions in your calculations
Determine the present value today of this deferred annuity : Mike Carlson will receive $24,000 a year from the end of the third year to the end of the 15th year (13 payments). Determine the present value today
What is the value of the inventory at October : On October 15, it sells 72 units. Using the FIFO periodic inventory method, what is the value of the inventory at October 15 after the sale
Determine the present value : If purchased, the restaurant would be held for 10 years and then sold for an estimated $740,000. Determine the present value
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
Prepare the journal entries on May to record cash payment : Prepare the journal entries on May 31 to record (a) the cash payment to cover the deficit and (b) the final disbursement of cash to the partners
Record the entries for the November transactions : On November 3, the Milwaukee Bucks sold a six game pack of advance tickets for $510 cash. Record the entries for the November transactions
What is the performance of the Daily News in the month : Question - Calculate the performance report of advertising revenue at the Daily News for March 2021, What is the performance of the Daily News in the month
Determine the dollar value of the annual bond : Baltimore uses the straight-line method for amortization. Use this information to determine the dollar value of the annual bond premium amortization

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd