w Surved Help SaveEm manufactured all the CDs itself as well as the accessories and packaging for all of its products 3 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 ed 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 22.000 units of the module per year for $2600 each. The following Information pertains to MSi's production of the control modules $13 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit 5 $31 MSI has determined that it could eliminate all variable costs of 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? 3-6. Suppose that the MSI space currently used for the modules could be utilized by a new product line that would generate $40.000 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. Rea 1 Reg 2 Reg 3A Reg 3 Compute the difference in cost between making and buying the control module. Diference in Cost Req2 > Next > Prey HW @ Bared Help Svet Subm 2 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 Check my work of a 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 22,000 units of the module per year for $2600 each. The following Information pertains to MSi's production of the control modules: ped Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit $13 7 5 6 531 ook MSI has determined that 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-. Suppose that the MSI space currently used for the modules could be utilized by a new product ine that would generate $40.000 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. Reg 1 Reg 2 Reg 3A Red B Should MSI buy the modules from MLC or continue to make them? Should MSI buy the modules from MLO or continue to make them? 2 Help SIE Suhm Check my work The gaming market has traditionally been targeted at teenagers and young adults, however, the increasing affordability of computers and the incorporation of computer activilles 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 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 22.000 units of the module per year for $2600 each The following Information pertains to MSi's production of the control modules. $13 Direct materials Direct labor Variable manufacturing overhead Fixed sanufacturing overhead Total cost per unit 5 5 $31 MSI has determined that it could eliminate all variable costs of 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? 3-4. Suppose that the MSI space currently used for the modules could be utilized by a new product line that would generate $40.000 in annual profit. Recompute the difference in cost between making and buying under this scenario 3-b. Does this change your recommendation to MS!? Complete this question by entering your answers in the tabs below. Res 1 Reg 2 Reg 3A Rea 38 Suppose that the MSI space currently used for the modules could be utilized by new product line that would generate 340.000 in annual profit. Recompute the difference in cost between making and buying under this scenario. ereen Cost Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit $31 ok MSI has determined that 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 mt 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 that the MSI space currently used for the modules could be utilized by a new product line that would generate $40,000 In annual profit. Recompute the difference in cost between making and buying under this scenario. 3-b. Does this change your recommendation to MSI? myces Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg Reg 3B Does this change your recommendation to MSI? Does this change your recommendation to MSI?