MSI is considering outsourcing the production ofthe handheld control module used with some of its products. The company has received a bid from Monte Legend Co. {MLC} to produce 8,000 units ofthe module per yearfor $18.00 each. The following information pertains to MSl's production ofthe control modules: Direct materials $ 9 Direct labor 6 Variable manufacturing overhead 2 Fixed manufacturing overhead _5 Total cost per unit i MSI has determined that it could eliminate all variable costs if the control modules were produced externally, but none ofthe 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. 2 Should MSI buy the modules from MLC or continue to make them? 3-3. Suppose that the MSI space currently used for the modules could be utilized by a new product line that would generate $40,000 in annual profit. Recompute the difference in cost between making and buying under this scenario. 3-b. Does this change your recommendation to MSI? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Compute the difference in cost between making and buying the control module. Difference in Cost9 Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Red 2 Req 3A Req BB Suppose that the MSI space currently:r used for the modules could be ulized by a new product line that would generate $40,000I in annual prot. Recompute the difference in cost between making and buying under this scenario