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 $2.70 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)	$155,000	$224,000
Variable cost per switch	0.70	0.40

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