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MSI is catsidering outhourmng the producten of the handineid control modile used wet some of is prodicti. fhe comgaby tias recelved a bid from Monte

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MSI is catsidering outhourmng the producten of the handineid control modile used wet some of is prodicti. fhe comgaby tias recelved a bid from Monte Legend compeny (MLC) lo nroduce fi,000 uniti of the module per year for $ sibeo each the folowing informution pertain to MSTs producton of the control thoductes: MSI hes determined it coukd elminate ar variable costs if the control modules were produced externally, but none of the fixed overhead in avoigabin. Ac this time. MSi has no specific use in mind for the spoce that is currenty dedicated to the contrut inodule prochuction. Required: 1. Compute the difference in cost between making and boying the control module. 2. Should M5s bury the modules from MtC ar continue to make them? 3-a. Suppose the MSi space cumently used for the modules could be Ltilied by a new product line that would generate S40,000 in annuai profit. Alecompute the difference in cost between making and buying under this scenario: 3b. Does this chanpe your recommendation to MSr? Complete this question by entering your answers in the tabs below. Corepute the differmot in cost betmeen making and buying the control module. MSi is considering outsasircing the production of the hand eid control module used with same of its products. The compsiny has information pertains to Msin broduction of the control modules: MSi has determined it couad eimunate all variable costs if the control modules were produced oxtemally, but none of the fued production Required: 1. Compute the dAlerence in coat between making and buying the contiol module. 2. Should MSi buy the modules from MLC of continue to make them? 3-a. Suppose the MSI spece currently ased for the modules could be utilized by a new product line that would generate $40, ooo in annual proft. Rircompithe the difterence in cost between making and buying under this scenario. 3.b. Does this change your necommendation to MSi? Complete this question by entering your answers in the tabs below. Shoild Nist bry the modules from MLC or conbiue to make them? MSi is considering outsourcing the oroduchion of the handheld control module used whin some of ith producis. mhe company han received a bid from Monte Lepend Company (MLC) to produce 8,000 units of the module per year far Ste oo each. the following information pertadis to MSis production of the control modulos: MS has determined il could elininate ali variable costs if the controt modiles were produced extemaly, but none of the fixed overthesd is avoldable At this time. MSit has no specific use in mind for the space that is curenenty dedicated to the controf module production Required: 1. Compute the difference in cost beoween making and buying the contuof module. 2. Shoild MSi buy the modiles from Mic or continue to make them? 3-a. Suppose the MSi space currentiy used for the modules could be unilized by a new product line that would geererate 540000 in annual profit. Recompute the diflerence in cost between moking and buying under this scensilo 3.b. Does this change your recommendation to MSt? Complete this question by entering your answers in the tabs below. Suppese the MSt spece cumrenty used for the modules coild be utilized by a new product line that would qenevate 340,000 in annual profit hecompoute the difference in cost between making and biying under this stenarla M51 is consideeing outsourcing the production of the handheid control modile used with same of as broducts. The carherly has recelved a bid from Monte Legend Company (MLC to produce B.000 units of the module per year for 5 ste ob each The followirg information pertains to MSts production of the control modules. MSi has determuined it couid eliminate all vanable costs if the control mocules were produced externally but hone of the fred overhead is tvoldabie. At this time, MSi has no specific use in mind for the space that is currently dedicated to the control modele productior Required: 1. Compute the difference in cost between making and buying the control module. 2. Should MSi buy the modules from Mic or continue to make them? 3.a. Suppose the MSI spece currently used for the modules could be utilized by a new product line that would generate 540.000 in annual profit Aecompute the difference in cost between makirg and buying under this scenario. 3-b. Does this change your recommendatian to MSI? Complete this question by entering your answers in the tabs below: Dces this change your recommendatioe to WSI

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