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E7-8 Analyzing Sell-or-Process-Further Decision [LO 7-2, 7-6] 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 with Instructional CD Only Materials Estimated demand 31,000 units 31.000 units Estimated sales price $ 27.00 $ 42.00 Estimated cost per unit Direct materials $ 4.75 $ 525 Direct labor 600 9.00 Variable manufacturing overhead 6.00 9.25 Fored manufacturing overhead 5.50 5.50 Unit manufacturing cost $ 22 25 $ 2900 Additional development cost $105,000 Required: 1. Based on the given data, Compute the increase or decrease in profit that would result if instructional materials were added to the CD CD Only CD with Instructions Materials Incremental Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) 3-a. Suppose that the higher price of the CDs with instructional materials is expected to reduce demand to 22.000 units. Complete the table given below based on Requirement 1 and 2 data. CD Only CD with Instructions Materials Incremental Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (LOSS)