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 10,000 units of the module per year for $17.00 each. The following information pertains to MSI's production of the control modules $10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit 523 MSI has determined that it could eliminate all variable costs if the control modules were produced externaly, but none of the fixed overhead is avoidable. At this time, MSI has no specifus 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 95.000 3-a. Suppose that the MSI space currently used for the modules could be utilized by a new product that would generate $2.000 annual profit Recompute the erence in content and under this scenario Difference in Cost 134.000 3-b. Does this change your recommendation to MS! o Yes No