Classico manufacturers 22,000 water boiler and espresso machine combinations annually. Historically they have produced all water boilers Internally, however, a vendor has contacted them about the possibility of buying the water bollers from an outside source Classico has the following data: Price per water boiler from the outside supplier $157 Internal costs per water boiler: Direct Material $86 Direct Labor $45 Variable Overhead $14 Classico Incurs $94,000 in total fixed costs related to water bollers, $88,600 of which is avoidable. Should Classico purchase or produce the water boilers, and what is the financial impact of the decision? Purchase the water boilers and save $175,400 Purchase the water boilers and save $264,000 O Produce the water boilers and save $264,000 O Produce the water bollers and save $175,400