Classico manufacturers 22,000 water boller and espresso machine combinations annually. Historically they have produced all water bollers 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 586 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 bollers, and what is the financial impact of the decision? Purchase the water boilers and save $264,000 Produce the water bollers and save $175,400 Purchase the water boilers and save $175,400 Produce the water boilers and save $264,000