{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-28T05:07:29-04:00", "answer_date": "2024-05-28 05:07:29", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1820208", "url": "\/study-help\/questions\/required-information-e76-through-e710-the-following-information-applies-to-1820208", "question_creation_date_js": "2024-05-28T05:07:29-04:00", "question_creation_date": "May 28, 2024 05:07 AM", "meta_title": "[Solved] Required information E7-6 through E7-10. | SolutionInn", "meta_description": "Answer of - Required information E7-6 through E7-10. [The following information applies to the questions displayed below.] Morning | SolutionInn", "meta_keywords": "required,information,e7-6,e7-10,applies,questions,displayed,below,morning,sky,inc,msi", "question_title_h1": " Required information E7-6 through E7-10. [The following information applies to the questions displayed below.] Morning Sky, Inc. (MSI), manufactures and sells computer games. The", "question_title": " Required information E7-6 through E7-10. [The following information applies to the", "question_title_for_js_snippet": "Required information E7 6 through E7 10 The following information applies to the questions displayed below Morning Sky, Inc (MSI), manufactures and sells computer games The company has several product lines based on the age range of the target market MSI sells both individual games as well as packaged sets All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets, and hand controls To date, MSI has developed and manufactured all the CDs itself as well as the accessories and packaging for all of its products The gaming market has traditionally been targeted at teenagers and young adults however, the increasing affordability of computers and the incorporation of computer activities into junior high and elementary school curriculums has led to a significant increase in sales to younger children MSI has always included games for younger children but now wants to expand its business to capitalize on changes in the industry The company currently has excess capacity and is investigating several possible ways to improve profitability 7 (Algo) Analyzing Make or Buy Decision LO 7 2, 7 4 I is considering outsourcing the production of the handheld control module used with ne of its products The company has received a bid from Monte Legend Co (MLC) to duce 27,000 units of the module per year for $33 00 each The following information tains to MSI's production of the control modules irect materials irect labor ariable manufacturing overhead ixed manufacturing overhead otal cost per unit $19 9 4 4 $36 I has determined that it could eliminate all variable costs if the control modules were duced externally, but none of the fixed overhead is avoidable At this time, MSI has specific use in mind for the space that is currently dedicated to the control module duction quired ompute the difference in cost between making and buying the control module Should MSI buy the modules from MLC or continue to make them Suppose that the MSI space currently used for the modules could be utilized by a v product line that would generate $31,000 in annual profit Recompute the cort hotonn makina and huinn under thie eranarin", "question_description": "\"image\"image\"image\"image\"image", "transcribed_text": "Required information E7-6 through E7-10. [The following information applies to the questions displayed below.] Morning Sky, Inc. (MSI), manufactures and sells computer games. The company has several product lines based on the age range of the target market. MSI sells both individual games as well as packaged sets. All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets, and hand controls. To date, MSI has developed and manufactured all the CDs itself as well as the accessories and packaging for all of its products. The gaming market has traditionally been targeted at teenagers and young adults; however, the increasing affordability of computers and the incorporation of computer activities into junior high and elementary school curriculums has led to a significant increase in sales to younger children. MSI has always included games for younger children but now wants to expand its business to capitalize on changes in the industry. The company currently has excess capacity and is investigating several possible ways to improve profitability. -7 (Algo) Analyzing Make-or-Buy Decision [LO 7-2, 7-4] I is considering outsourcing the production of the handheld control module used with ne of its products. The company has received a bid from Monte Legend Co. (MLC) to duce 27,000 units of the module per year for $33.00 each. The following information tains to MSI's production of the control modules: irect materials irect labor. ariable manufacturing overhead ixed manufacturing overhead. otal cost per unit $19 9 4 4 $36 I has determined that it could eliminate all variable costs if the control modules were duced externally, but none of the fixed overhead is avoidable. At this time, MSI has specific use in mind for the space that is currently dedicated to the control module duction. quired: ompute the difference in cost between making and buying the control module. Should MSI buy the modules from MLC or continue to make them? . Suppose that the MSI space currently used for the modules could be utilized by a v product line that would generate $31,000 in annual profit. Recompute the cort hotonn makina and huinn under thie eranarin", "related_book": { "title": "Principles of Accounting", "isbn": "978-1133603054, 113362698X, 9781285607047, 113360305X, 978-1133626985", "edition": "12th edition", "authors": "Belverd E. Needles, Marian Powers and Susan V. Crosson", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/285.jpg", "uri": "\/textbooks\/principles-of-accounting-12th-edition-285", "see_more_uri": "" }, "free_related_book": { "isbn": "1601986521", "uri": "\/textbooks\/speech-analysis-in-financial-markets-1st-edition-978-1601986528-192240", "name": "Speech Analysis In Financial Markets", "edition": "1st Edition" }, "question_posted": "2024-05-28 05:07:29", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/you-have-just-graduated-from-deakin-as-an-accounting-and-finance-graduate-193926", "description": "YOU have just graduated from Deakin as an accounting and finance graduate. During your time at Deakin, you were organized and diligent with your studies and thus graduated with flying colors. 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The company has always produced all of the necessary parts for its engines, including all of the carburetors. An...", "stars": 3 }, { "url": "\/study-help\/questions\/a-spaceship-is-orbiting-around-the-earth-the-mass-of-859119", "description": "A spaceship is orbiting around the Earth. The mass of Earth is 5.98 x 1024 kg, and the mass of the spaceship is 8600 kg. Let R be the distance from the center of Earth. If this distance changes from...", "stars": 3 }, { "url": "\/study-help\/questions\/5-two-events-occur-at-positions-on-the-xaxis-separated-859129", "description": "5. Two events occur at positions on the x-axis separated by a distance of Ax and by a time interval of At, according to one observer (Ann). Ann notes that when the first event occurs (a flash of...", "stars": 3 }, { "url": "\/study-help\/questions\/a-transverse-mechanical-wave-is-traveling-along-a-string-lying-859478", "description": "A transverse mechanical wave is traveling along a string lying along the x-axis. The displacement of the string as a function of position and time, y(x, t), is described by the following equation:...", "stars": 3 }, { "url": "\/study-help\/questions\/dominics-deli-recently-calculated-its-annual-breakeven-sales-revenue-to-859776", "description": "Dominic's Deli recently calculated its annual break-even sales revenue to be $280,000. For each dollar of sales revenue, $0.40 goes to cover variable costs. a. Compute the contribution margin ratio....", "stars": 3 }, { "url": "\/study-help\/questions\/which-of-the-following-steps-is-not-associated-with-the-5092613", "description": "Which of the following steps is not associated with the \"Silent Phase\" of the Change Process? 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