Vista Company manufactures electronic equipment. In $2021,$ it purchased from an outside supplier the special switches used in each of

its products. The supplier charged Vista $$2\mathrm{.}50$ per switch. As an alternative, 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 $2022$ to purchase machine A$,$

based on the following data:

Annual fixed cost $($depreciation$)$

Variable cost per switch

Machine A

$$140,000$

$0\mathrm{.}90$

Machine B

$$209,000$

$0\mathrm{.}55$

Required:

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 the

outside vendor$)?$

Assume that machine A has already been purchased. Is it preferable to use machine $A$ to make the switches or to purchase the

switches from the external supplier?

Assume that machine A has already been purchased. At what annual volume level should Vista consider replacing machine A with

machine $B?$

Complete this 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 indifferent

between the two decision alternatives $($i$.$e$.,$ purchasing and then using machine $A$ to make the switches versus purchasing the

switches from the outside vendor$)?($Do not round intermediate calculations. Round your final answer up to the nearest whole

number.$)$