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10. velue: 10.00 points Required Information MSI's educational products are currently said without any supplemental materials. The company is considering the indusion of instructional materials
10. velue: 10.00 points Required Information MSI's educational products are currently said without any supplemental materials. The company is considering the indusion of instructional materials such as an averhead slide presentation, potential test questions, and classroom bulletin board materials for teachers. A summary of the expected costs and revenues for MSI's two options follows: CD with Instructional CD Only Materials Estimated demand 39.000 units 39,000 units Estimated sale price S 35.00 $ 50.00 Estimated cost per unit Direct materials $ 6.75 $ Direct labor 9.00 13.00 Variable manufacturing 9.00 12.25 overhead Fixed manufacturing overhead 9.50 9.50 Unit manufacturing cost S 34.25 $ 44.00 Additional development cost $105,000 Required: 1. Based on the given data, Compute the increase or decrease in pront that would result instructional materials were added to the CDs. CD with CD Only Instructions Incremental Materials Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) 2. Should MSI add the instructional materials or sell the CDs without them? Sell the CDs without Instructional Materials Add the Instructional Materials 3-a. Suppose that the higher price of the CDs with instructional materials is expected to reduce demand to 21,000 units. Complete the table given below based on Requirement 1 and 2 data CD with CD Only Instructions Incremental Materials Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss)
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