E$7-7($Algo$)$ Analyzing Make$-$or$-$Buy Decision $[$LO $7-2,7-4]$

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 Company $($MLC$)$ to produce $26,000$ units of the module per year for $$35\mathrm{.}00$ each. The following information pertains to MSI's production of the control modules:

$\backslash$table$[[$Direct materials,$$20$