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Required information 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 solis both individual games as well as packaged. All games are in CD format, and some utilire accessories such as steering wheels, electronice tablets, and hand control. 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 curriculum 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 MSIS educational products are currently sold without any supplemental materials. The company is caring the inclusion of Instructional materials such as an overhead slide presentation, potential test questions, and som bulletin board materials for teachers. A summary of the expected costs and revenues for MSI's two options follows: CD Only 27.00 units 23.00 CD with Instructional Materiale 27.000 units 338.00 Estimated desand Estimated wales price Estimated cost per unit Direct materiale Direct labor Variable manufacturing overhead Tixed manufacturing overhead Unit afturing coat Additional development cout # 2.75 4.00 4.00 3.50 14.25 3.25 7.00 3.25 3.50 21.00 $105,000 Required: 1. Based on the given dato, compute the increase or decrease in profit that would rezuit If instructionai materials were added to the CDs 2. Should MSI add the instructional materials or sell the CDs without them? 3. Suppose that the higher price of the CDs with instructional materiais expected to reduce demand to 20,000 units. Complete the table given below based on Requirement 1 and 2 data 3-b. Should MSI add the instructional materials or sell the CDs without them? Complete this question by entering your answers in the tabs below. Reg 1 Reg2 RAGA Reg38 Based on the given data, compute the increase or decrease in profit that would result instructional materials were added to the CDs CD Only CD with instructional incremental Sales Revenge Variable Costa Contribution Margin Additional Development Costs Differential Profit (Loss) Reg 2 > Required information The following information applied 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 format and some utilize accessories such as steering wheels, electronic tablets, and hand control. 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 adabiyot computers and the incorporation of computer activities into junior high and elementary school curriculums has led to significant increase in sales to younger children. MS has always included games for younger children but now wants to expand its business to capitale on changes in the industry. The company currently has excess capacity and is Investigating several possible ways to improve profitability MSIX educational products are currently sold without any supplemental materials. The company is considering the inclusion of Instructional materials such as an overhead 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 Only 21,000 W 120.00 materiale 27,000 + 38.00 Etted des tad sale price Ett penit Direct materiale Direct labor Yarate manufacturing overhead daring overhead Onit manufacturing cont Meeldet 12.75 8.00 0.00 2.25 3.00 9.15 3.50 21.00 5105,000 CDs Required: 1. Based on the given data.compute the increase or decrease in profit that would result of instructional materials were added to the 2. Should MSI add the instructional materials or sell the CDs without them? 3- Suppose that the higher price of the CDs with instructional materials is expected to reduce demand to 20.000 units Complete the table given below based on Requirement 1 and 2 dela 3-b. Should MSI add the instructional materials or sell the CDs without them? Complete this question by entering your answers in the tabs below. 2 RA R38 Should Sadd the instructional materials or the CDs without them? Should add the contra CD without the Required information The following information applies to the questions displayed below! Morning Sky, Inc. (MSB, 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 utile 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, MSI's educational products are currently sold without any supplemental materials. The company is considering the inclusion of Instructional materials such as an overhead 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 Only 27.000 units $ 23.00 cn with Tnetructional Materiale 27,000 units 5 38.00 Estimated demand tatimated sales price Etiated cont per unit Direct materiale Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit manufacturing cont Additional development cout $ 2.75 4.00 4.00 3.50 # 14.25 3.25 7.00 7.25 1 21.00 0105,000 Required: 1. Based on the given dato, compute the increase or decrease in profit that would result if instructional materials were added to the CDs 2. Should MSI add the instructional materials or sell the CDs without them? 3. Suppose that the higher price of the CDs with instructional materials is expected to reduce demand to 20,000 units. Complete the table given below based on Requirement 1 and 2 data 3-b. Should MSI add the instructional materials or sell the CDs without them? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg38 Tas Suppose that the higher price of the cos with instructional materials is expected to reduce demand to 20,000 units. Complete the table given below based on Requirement 1 and 2 data. Co Only CO with instructional Materials Incremental Salon Revenue Variable Costa Contribution Margin Additional Development Costs Differential Profit (Loss)