Vista Company manufactures electronic equipment. It currently purchases the special switches used in each of its products from an outside supplier. The supplier charges Vista $3.50 per switch. Vista's CEO is considering purchasing either machine A or machine B so the company can manufacture its own switches. The projected data are as follows:

Machine A Machine B

Annual fixed costs $333,200 $450,000

Variable cost per switch 1.12 0.50

Required:

1.For each machine, what is the minimum number of switches that Vista must make annually for total costs to equal outside purchase cost?

2 What volume level would produce the same total costs regardless of the machine purchased?(Do not round intermediate calculations. Round your answer up to the nearest whole number.)

Volume level[ ]units

3What is the most profitable alternative for producing 190,000 switches per year and what is the total cost of that alternative?