Blowing Sand Company also has the Blast fon model. It is the company's top-selling model with sales of 30,000 units per year. This model has a dual fan as well as a thermostat component that causes the fan to cycle on and off depending on the room temperature, Blowing Sand has always manufactured the thermostat component but is considering buying the part from a supplier. It costs Blowing Sand $5 to make each thermostat ($2.50 variable and $2.50 fixed), Flurry Co. has offered to sell the component to Blowing Sand for $4. Blowing Sand's decision to purchase the part from Flurry would eliminate all variable costs but none of the fixed costs. Blowing Sand has no other possible uses for the area currently dedicated to the thermostat production Calculate the effect on Blowing Sand's annual total costs if the thermostals purchased from Flurry Co. The Total Cost Decreases by Should Blowing Sand continue to make the thermostat or purchase the part from Flurry Co.? Purchase Continue to make 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: $10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit $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-a. 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 this change your recommendation to MSI? Complete this question by entering your answers in the tabs below. Reg1 Reg 2 ReQ 3A Reg 38