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Required information [The following information applies to the questions displayed below.] Morning Siky, Incorporated (MSI), manufactures and sells computer games. The company has several product

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Required information [The following information applies to the questions displayed below.] Morning Siky, Incorporated (MSI), manufactures and sells computer games. The company has several product lines based on the age range of the target market MSI sells both individuol. 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 curticulums 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. USI is considering outsourcing the production of the handheld control module used with some of its products. The ompany has received a bid from Monte Legend Company (MLC) to produce 21,000 units of the module peryear or $24.00 each. The following information pertains to MSI's production of the control modules: 1SI has determined it could eliminate all variable costs if the control modules were produced externally, but none f the fixed overhead is avoidable. At this time, MSI has no specific use in mind for the space that is currently edicated to the control module production. equired: Compute the difference in cost between making and buying the control module. . Should MSI buy the modules from MLC or continue to make them? -a. Suppose the MSI space currently used for the modules could be utilized by a new product line that would: enerate $29,000 in annual profit. Recompute the difference in cost between making and buying under this cenario. -b. Does this change your recommendation to MSI? Complete this question by entering your answers in the tabs below. Compute the difference in cost between making and buying the control module

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