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 its products. The company has received a bid from Monte Legend Co. (MLC) to produce 16,000 units of the module per year for $3600 each. The following Information pertains to MSI's production of the control modules ok $19 Direct materials Direct Labor Variable manufacturing Fixed manufacturing Total cost per unit 7 $97 ces 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 cont 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 $38,000 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. Reg 1 Reg 2 Red 3A Reg 38 Compute the difference in cost between making and buying the control module 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 its products. The company has received a bid from Monte Legend Co. (MLC) to produce 16.000 units of the module per year for $36.00 each. The following information pertains to MSI's production of the control modules Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing over Total cost per unit $19 9 7 2 MSI has determined that it could this variable costs if the control modules were produced externally, but none of the twed overhead is avoidable. At this time, M5, no specific use in mind for the space that is currently dedicated to the control module production 5 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 $38.000 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. Reg 1 Real Reg 3A Req 38 Should MSI buy the modules from MLC or continue to make them? C 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 its products. The company has received a bid from Monte Legend Co (MLC) to produce 16,000 units of the module per year for $36.00 each. The following Information pertains to MSi's production of the control modules: Jook Direct materials Direct labor Variable manufacturing over Fixed manufacturing over Total cost per unit $19 9 2 2 537 Print MSi has determined that it could all variable costs of the control modules were produced externally, but none of the fixed overhead is avoidable. At this time, MS, no specific use in mind for the space that is currently dedicated to the control module production erences Required: 1. Compute the difference in cost behin making and buying the control module 2. Should MSI buy the modules from WILC 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 $38.000 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. Reg 1 Reg 2 Reg 3A Reg38 Suppose that the MSI space currently used for the modules could be utilized by a new product line that would generate $38,000 in annual profit. Recompute the difference in cost between making and buying under this scenario. 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 its products. The company has received a bid from Monte Legend Co. (MLC) to produce 16,000 units of the module per year for $36.00 each. The following information pertains to MSi's production of the control modules Direct materials Direct labor Variable manufacturing overed Fixed manufacturing over Total cost per unit $19 9 7 2 537 MSI has determined that it could caminate 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 costween making and buying the control module. 2. Should MSI buy the modules 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 $38.000 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. Reg 1 Reg 2 Reg 3A Reg 38 Does this change your recommendation to MSI? 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 its products. The company has received a bid from Monte Legend Co. (MLC) to produce 16,000 units of the module per year for $36.00 each. The following information pertains to MSi's production of the control modules Direct materials Direct labor Variable manufacturing overed Fixed manufacturing over Total cost per unit $19 9 7 2 537 MSI has determined that it could caminate 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 costween making and buying the control module. 2. Should MSI buy the modules 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 $38.000 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. Reg 1 Reg 2 Reg 3A Reg 38 Does this change your recommendation to MSI