Question: 8. value 10.00 points Required information MSI is considering outsourcing the production of the handheld control module used with some of its products. The company

8. value 10.00 points Required information MSI is considering outsourcing the production of the handheld control module used with some of its products. The company has received a bid from Monte Legend Co. (MLC) to produce 24,000 units of the module per year for $27.00 each. The following information pertains to MSI'S production of the control modules: $13 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 7 Total cost per un MSI has determined that it could elminate all variable costs if the control modules were produced extemally, but none of the fixed overhead is avoidable. At this time, MSI has no specific use in mind for the space that is currently dedicated to the control module production. Required: 1. Compute the difference in cost between making and buying the control module Difference in Cost 2. Should MSI buy the modules from MLC or continue to make them? Buy Make 3-a. Suppose that the MSI space currently used for the modules could be utilized by a new product line that would generate S30,000 in annual prodit. Recompute the difference in cost between making and buying under this scenario Difference in Cos
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