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Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
Edition 6ISBN: 978-0078025532Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
Edition 6ISBN: 978-0078025532 Exercise 5
Make or Buy; Continuation of Exercise 9-25 (Chapter 9) Vista Company manufactures electronic equipment. In 2012, it purchased the special switches used in each of its products from an outside supplier. The supplier charged Vista $2 per switch. 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 2013 to purchase Machine A, based on the following data:
Required
1. For machine A, what is the indifference point between purchasing the machine and purchasing from the outside vendor
2. At what volume level should Vista consider purchasing Machine B
3. Use the Goal Seek function in Excel to determine the volume-indifference level you calculated above in requirement 2.
Required
1. For machine A, what is the indifference point between purchasing the machine and purchasing from the outside vendor
2. At what volume level should Vista consider purchasing Machine B
3. Use the Goal Seek function in Excel to determine the volume-indifference level you calculated above in requirement 2.
Explanation
Verified
Verified
1.
The indifference point is the balance...
Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
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