Question: please answer all 4 MSI is considering outsourcing the production of the handheld control module used with some of its products. The company has received
please answer all 4



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 19,000 units of the module per year for $1700 each. The following Information pertains to MSI's production of the control modules: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit $10 4 2 523 MSI has determined that it could eliminate all variable costs of the control modules were produced externally, 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. 2. Should MSI buy the modules from MLC of continue to make them? 3-6. Suppose that the MSI space currently used for the modules could be utilized by a new product line that would generate $39,000 In annual profit. Recompute the difference in cost between making and buying under this scenario 3-b. Does to change your recommendation to MSI? Complete this question by entering your answers in the tabs below. Beat NG 2 Reo 3A Rea 30 Comote the diference in cost between making and buying the control modulo Dance in con 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 19,000 units of the module per year for $1700 each. The following Information pertains to MSI's production of the control modules: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit $10 4 2 $23 MSi has determined that it could eliminate all variable costs in the control modules were produced externally, but none of the fixed overhead is avoidable. Al this time, MSt 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? 3-6. Suppose that the MSI space currently used for the modules could be utilized by a new product line that would generate $39.000 In annual profie. Recompute the difference in cost between making and buying under this scenario 3-b. Does this change your recommendation to MSI? ces Complete this question by entering your answers in the tabs below. Reg2 Reu Should MSI buy the modules from MLC continue to make them? Should Sitwy i wston M. Coccone to make them MSI is considering outsourcing the production of the handheld control module used with some of its products. The company has recelved a bid from Monte Legend Co. (MLC) to produce 19,000 units of the module per year for $17.00 each. The following Information pertains to MSi's production of the control modules Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit $10 4 2 7 $23 ant MSI has determined that it could eliminate all variable costs If the control modules were produced externally, but none of the fixed overhead Is avoldable. 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? 3-0. Suppose that the MSI space currently used for the modules could be utilized by a new product line that would generate $39.000 In annual profit. Recompute the difference in cost between making and buying under this scenarlo 3-b. Does this change your recommendation to MSI? erences Complete this question by entering your answers in the tabs below. Regi Reg 2 Reg 3A Reg 30 Suppose that the MSI space currently used for the modules could be utilized by a new product line that would generate $39,000 in annual pront. Recompute the difference in cost between making and buying under this scenario, Odfoten Cost 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 19.000 units of the module per year for $17.00 each. The following Information pertains to MSI's production of the control modules: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit $10 4 2 2 $23 MSI has determined that it could eliminate all variable costs if the control modules were produced externally, 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. 2. Should MSI buy the modules from MLC or continue to make them? 3.6. Suppose that the MSI space curtently used for the modules could be utilized by a new product line that would generate $39.000 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. Regi Reg 2 RA Reg 30 Does this change your recommendation to MSI? Does this change your recommendation to MSI?
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