E7.6 through E7.9. [The following informition applies to the questions displayed betow] Maining Siky, incorporated (MSI, manufactures and sels computer games. The compary has severat product linets based on the age range of the target market. MSI seils both indivdual games as well as packaged sets. All games are in CO format, and some utilize accessories such as steering wheels, electronic tablets, and hand controls. To date, MSi has developed and manufactured al the CDs eself as well as the accessories and packaging for all of its products. The gaming market has traditionaly been targeted at leenagers and young adults, howevet, the hcreasing affoedabilify of computers and the incorporation of computer actwies into junior high and elementaty school curriculums has led to a significant increase in sales to younger children. MSi has always induded gaines for younger childien but now wants to expand its business to capitalize on changes in the industry. The compapy curently has excess capacity and is. investigating several possible ways to improve profitabitity. E7-7 (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 iss products. The company has received a bid from Monte Legend Comparty (MiC) to produce 17,000 units af the module per year for $3200 each. The following information pertains to MSt's production of the control modules. MSi has determined it could elminate all variable costs if the control modules were produced exemaly, but none of the fived 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 befween making and buying the controt module (lequired 2. Should MSi buy the modules from MLC or continue to make them? 3.0. Suppose the MSI space currently used for the modules could be utilaed by a new product line that would generate 543.000 in 3.- Suppose the Msi space current profit Recompute the difference in cost between moking and buying under this scenano. 3.b. Does this change your recommendasion to MSI? Complete this question by entering your answers in the tabs below. Compute the difference in cost between making and buying the control module, Complete this question by entering your answers in the tabs below. Should MSI buy the modules from MLC or continue to make them? Should MSI buy the modules from MLC or continue to make them? Complete this question by entering your answers in the tabs below. Suppose the MSI space currently used for the modules could be utilized by a new product line that would generate $43,000 in annual profit, Recompute the difference in cost between making and buying under this scenario. Complete this question by entering your answers in the tabs below. Does this change your recommendation to MSI