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M Question 3 - Chapter 7 Assignment - Connect er 7 Assignment i Saved Help Save & Exit Submit Check my work N Required information

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M Question 3 - Chapter 7 Assignment - Connect er 7 Assignment i Saved Help Save & Exit Submit Check my work N Required information of 4 MSI has determined 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 the MSI space currently used for the modules could be utilized by a new product line that would generate $36,000 in ok annual profit. Recompute the difference in cost between making and buying under this scenario. 3-b. Does this change your recommendation to MSI? int Complete this question by entering your answers in the tabs below. int Required 1 Required 2 Required 3A Required 3B ences Suppose the MSI space currently used for the modules could be utilized by a new product line that would generate $36,000 in annual profit. Recompute the difference in cost between making and buying under this scenario. Difference in Cost $ (12,000)

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