LO 9-3] 9-25 Cost Planning: Machine Replacement Vista Company manufactures electronic equipment. It currently purchases from an outside supplier the special switches used in each of its products. The supplier charges Vista $2 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 B $204,000 Machine A Annual fixed cost Variable cost per switch $135,000 0.65 0.30 Required 1. For each machine, what is the minimum number of swiches that Vista must make annually 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 200,000 switches per year? 4. Which of the two decision alternatives would you recommend? Why