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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

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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 11.000 units of the modulo per year for $17.00 each. The following information pertains to MSI's production of the control modules Det materials Direct labor Variable manufacturing overhead Find manufacturing overhead Totalco per unit $24 speciffoute 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. MS has 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. Dragnen in Con man 2. Should MSI buy the modules from MLC or continue to make them? MORE Buy 130 OV 2. Should MSI buy the modules from MLC or continue to make them? Make Buy 3. Suppose that the MS space currently used for the modules could be hired by a new product in that would punere S41.000 or pront. Recompute the aerence in cost between making and buying under this scenario 3-b. Does this change your recommendation to MSI Yes NO 30 FR v

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