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Vista Company manufactures electronic equipment. In 2 0 2 1 , it purchased from an outside supplier the special switches used in each of its

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 $2.20 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:
\table[[Annual fixed cost (depreciation),Machine A,Machine B],[Variable cost per switch,$145,000,$206,000
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