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{.}90$ 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:

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 $B?$