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MSI s considaring outsourcing the production af the handheld control module used with some of its products. The company has recahed a bild fram Mionte
MSI s considaring outsourcing the production af the handheld control module used with some of its products. The company has recahed a bild fram Mionte Lagend Co. (MLC)to produco 26,000 units of the modula per ycar for $35.00 cach. The following nformation pertains to MSI's production of the control modules The foliowinginformation $20 10 Direct labor Fond manfachuring ouerhead MSI has determined that it could ciminate all varisble costs if the control modulcs were produced exeally, but none of the fixed overhead is avaidable. At this time, MSI has no specific use in mind for the space that is currently dedicated to the contral module production. Raquirad: 1.Compule the difference in cust between making and buying the control module 2. Should MSI buy the modules fram MLC or continue to make them? O Buy Make 3-a Suppose that the MSI spaca currerny used for tha madulas could be unlced by n naw procluer line that would ganerae $46 000 in annual proft Recompuna the cifference in coat herwean making and huyng undarthsscanano
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