[The following information applies to the questions displayed below] Morning Sky, incorporated (MSI), manufoctures 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 formot, and some utilize accessories such as steering wheels, electronic tablets, and hand controls, To date. MSI has developed and manufactured all the CDs iself as well as the accessories and packaging for all of its products. The gaming market has traditionally been targeted at teensgers and young adults; however, the increasing affordablity 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 investigatiog several possible ways to improve profitability. E7-7 (Algo) Analyzing Make-or-Buy Decision [LO 7-2, 7-4] 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 Company (MLC) to produce 18,000 units of the module per year for $25.00 each. The following information pertains to MSi's production of the control modules: MSI has determined it could eliminate all variable costs if the control modules were produced externally, but none of the fixed overhead is avoldable. At this time, MSi has no specific use in mind for the spoce that is currently dedicated to the control module production Required: 1. Compute the difference in cost between making and buying the control module. 2. Should MSI buy the modules from MLC or continue to make them? 3-a. Suppose the MSI space currently used for the modules could be utilized by a new product line that would generate $28,000 in annual profit. Recompute the difference in cost between making and buying under this scenario. 3-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. 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 Company (MLC) to produce 18,000 units of the module per year for $25.00 each. The following information pertains to MSI's production of the control modules: MSi has determined it could eliminate all variable costs if the control modules were produced externally, 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. 2. Should MSI buy the modules from MLC or continue to make them? 3-a. Suppose the MSI space currently used for the modules could be utilized by a new product line that would generate $28,000 in annual profit. Recompute the difference in cost between making and buying under this scenario. 3-b. Does this change your recommendation to MSI? Complete this question by entering your answers in the tabs below. Should MSI buy the modules from MLC or continue to make them? Should MSI buy the modules from MLC or continue to make them? MS1 is considering outsoureing the production of the handheld control module used with some of its products. The company has received a bid from Morte Legend Company (MLC) to produce 18,000 units of the module per year for $25.00 each. The following information pertains to MSI's production of the control modules: MSi has determined it could eliminate all variable costs if the control modules were produced externally, but none of the fixed overhead is avoldable. 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. 2. Should MSI buy the modules from MLC or continue to make them? 3-a. Suppose the MSI space currently used for the modules could be utilized by a new product line that would generate $28, 000 in annual profit, Recompute the difference in cost between making and buying under this scenario. 3-b. Does this change your recommendation to MSI? Complete this question by entering your answers in the tabs below. Suppose the MSI space currently used for the moduies could be utilized by a new product line that would generate $28,000 in annual profit. Recompute the difference in cost between making and buying under this scenario. MSI has determined it could eliminate all variable costs if the control modules were produced externally, 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. Requlred: 1. Compute the difference in cost between making and buying the control module. 2. Should MSI buy the modules from MLC or continue to make them? 3-a. Suppose the MSI space currently used for the modules could be utilized by a new product line that would generate $28.000 in annual profit. Recompute the difference in cost between making and buying under this scenario. 3-b. Does this change your recommendation to MSI? Complete this question by entering your answers in the tabs below. Does this change your recommendation to MSI