MSI is considering outsourcing the production of the handheld control module used with some of Its products. The company has recelved a bid from Monte Legend Co. (MLC) to produce 20,000 units of the module per year for $20.00 each. The folloing Information pertalns to MSI's production of the control modules: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit S10 S27 MSI has determined that it could eliminate all variable costs if the control modules were produced extemally, 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. Difference in Cost 3-a. Suppose that the MSI space currently used for the modules could be utlized by a new product line that would generate $44,000 In annual profit. Recompute the difference in cost between making and buylng under this scenario. Difference in Cost