Vista Company manufactures electronic equipment In 2015, it purchased from an outside supplier the special switches used in each of its products The supplier charged Vista $2 60 per switch As an alternative, Vistas CEO considered purchasing either machine A or machine B so the company could manufacture its own switches The CEO decided at the beginning of 2016 to purchase machine A, based on the following data Machine A Machine B Annual fixed cost (depreciation) $141,000 $210,000 Variable cost per switch 0 60 0 25 Required 1 Assume that machine A has not yet been purchased What is the indifference point between purchasing machine A and purchasing the switches from the outside vendor (Do not round intermediate calculations ) 2 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 Use machine A to make the switches Purchase the switches from the external supplier 3 At what volume level should Vista consider replacing machine A with machine B (Do not round intermediate calculations Round up your final answer to the nearest whole number )

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Vista Company manufactures electronic equipment. In 2015, it purchased from an outside supplier the special switches used in each of its products. The supplier charged

Vista Company manufactures electronic equipment. In 2015, it purchased from an outside supplier the special switches used in each of its products. The supplier charged Vista $2.60 per switch. As an alternative, Vistas CEO considered purchasing either machine A or machine B so the company could manufacture its own switches. The CEO decided at the beginning of 2016 to purchase machine A, based on the following data:

	Machine A	Machine B
Annual fixed cost
(depreciation)	$141,000	$210,000
Variable cost per switch	0.60	0.25

Required:

1.	Assume that machine A has not yet been purchased. What is the indifference point between purchasing machine A and purchasing the switches from the outside vendor? (Do not round intermediate calculations.)

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?

	Use machine A to make the switches.
	Purchase the switches from the external supplier.

3.	At what volume level should Vista consider replacing machine A with machine B? (Do not round intermediate calculations. Round up your final answer to the nearest whole number.)