Vista Company manufactures electronic equipment. In 2018, it purchased from an outside supplier the special switches used in each of its products….

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Vista Company manufactures electronic equipment. In 2018, it purchased from an outside supplier the special switches used in each ofits products. The supplier charged Vista $2.3 per switch. As an alternative, Vista’s CEO considered purchasing either machine A ormachine 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 Machine BAnnual fixed cost (depreciation) $171,000 $215,000Variable cost per switch 0.30 0.50’— Required:1. 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 (i.e., purchasing and then using machine A to make the switches versus purchasing the switches from theoutside vendor)? 2. Assume that machine A has already been purchased. Is it preferable to use machine A to make the switches or to purchase theswitches from the external supplier? 3. Assume that machine A has already been purchased. At what annual volume level should Vista consider replacing machine A withmachine B? Complete thls question by entering your answers In the tabs below. Assume that machine A has not yet been purchased. What is the annual volume that would make the company indifferentbetween the two decision alternatives (i.e., purchasing and then using machine A to make the switches versus purchasingthe switches from the outside vendor)? (Do not round intermediate calculations. Round UP your final answer to the nearest whole number.)_—

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