MSI is considering Outsourcing the production of the handheld control module used with some of its products.

MSl 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 17,000 units of the module per year for $32.00 each. The following informati pertains to MSI's production of the control modules Direct materials $18 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit 536 MSI has determined that it could eliminate all variable costs if the control modufes were produced externally, but none of the fixed overhead is avoidable. At this time, MSi he no specific use in mind for the space that is currently dedicatedi to the control module production Required: 1. Compute the difference in cost between making and buying the control module Difference in Cost