C Mornings X C Mornings X 6 Question: X e McGraw+ X Euniversity X e Calendar X T MAT211,5 X t Homewori X C Required: X C MSI'sedu X + ( C' i ezto.mheducation.com,'. .i'..hliii.', .iiii', in l,l7',i,\"t,,'l Li.'l.i.w.ii.i in ' . ,lill',',,',,i . '. V, m 51': I I] '3" E Chapter 7 HW 0 Saved Help Save& Exit Submit 4 Required information [T he following information applies to the questions displayed below] Morning Sky, Incorporated (MSI), manufactures and sells computer games. The company has several product lines based P n4 M L 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 utilize 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. 125 points The gaming market has traditionally been targeted at teenagers and young adults; however, the increasing affordability of computers and the incorporation of computer activities intojunior 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 a 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. eBook Hint MSl's educational products currently are 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 E teachers. A summary ofthe expected costs and revenues for MSI's two options follows: Print CD with [E Instructional CD Only Materials References Estimated demand 42 , 000 units 42 , 000 units Estimated sales price $ 26.00 $ 53.00 Estimated cost per unit Direct materials 3 2.00 $ 2.25 Direct labor 2.50 5.50 Variable manufacturing overhead 2 . 50 5 . 75 Fixed manufacturing overhead 2 . 50 2 . 50 Unit manufacturing cost $ 9 .50 $ 16.00 Additional development cost $ 125 , 000 Required: 1. Based on the given data, compute the increase or decrease in prot that would result if instructional materials were added to the ("Us Next > 0'? g HillC Morning Sky x C Morning Sky X Question 4 X ASU McGraw-Hil x su University A X ASU Calendar X MAT 211, se X Homework | X C Required inf X C MSI's educa X K- C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%2... Chapter 7 HW i Saved Help Save & Exit Submit Check my work Required information CDS. Part 4 of 4 2. Should MSI add the instructional materials or sell the CDs without them? 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 this scenario. 3-b. Should MSI add the instructional materials or sell the CDs without them? 1.25 points Complete this question by entering your answers in the tabs below. eBook Req 1 Req 2 Req 3A Req 3B Based on the given data, compute the increase or decrease in profit that would result if instructional materials were added to Hint the CDS. CD Only CD with Instructional Materials Incremental Print Sales Revenue Variable Costs Contribution Margin References Additional Development Costs Differential Profit (Loss) Mc Graw HillC Morning Sky X C Morning Sky X Question 4 X ASU McGraw-Hil x su University A X ASU Calendar X MAT 211, se X Homework | X C Required inf X C MSI's educa X K C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%2... Chapter 7 HW i Saved Help Save & Exit Submit Check my work 4 - . . . Required information Additional development cost $ 125 , 000 Part 4 of 4 Required: 1. Based on the given data, compute the increase or decrease in profit that would result if instructional materials were added to the CDS. 1.25 2. Should MSI add the instructional materials or sell the CDs without them? points 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 this scenario 3-b. Should MSI add the instructional materials or sell the CDs without them? eBook Complete this question by entering your answers in the tabs below. Hint Reg 1 Req 2 Req 3A Req 3B Print Should MSI add the instructional materials or sell the CDs without them? Should MSI add the instructional materials or sell the CDs without them? References Mc Graw HillC Morning Sky x C Morning Sky X Question 4 X ASU McGraw-Hil x su University A X ASU Calendar X MAT 211, se X Homework | X C Required inf X C MSI's educa X K- C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%2... Chapter 7 HW i Saved Help Save & Exit Submit Check my work Required information CDS. Part 4 of 4 2. Should MSI add the instructional materials or sell the CDs without them? 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 this scenario. 3-b. Should MSI add the instructional materials or sell the CDs without them? 1.25 points Complete this question by entering your answers in the tabs below. eBook Req 1 Req 2 Req 3A Req 3B Suppose that the higher price of the CDs with instructional materials is expected to reduce demand to 22,000 units. Complete Hint the table given below based on this scenario. CD Only CD with Instructional Materials Incremental Print Sales Revenue Variable Costs References Contribution Margin Additional Development Costs Differential Profit (Loss) Mc Graw HillC Morning Sky x C Morning Sky X Question 4 X ASU McGraw-Hil x su University A X ASU Calendar X MAT 211, se X Homework | X C Required inf X C MSI's educa X K- C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%2... Chapter 7 HW i Saved Help Save & Exit Submit Check my work - . . . - . . Required information Additional development cost $ 125 , 000 Part 4 of 4 Required: 1. Based on the given data, compute the increase or decrease in profit that would result if instructional materials were added to the CDS. 1.25 2. Should MSI add the instructional materials or sell the CDs without them? points 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 this scenario 3-b. Should MSI add the instructional materials or sell the CDs without them? eBook Complete this question by entering your answers in the tabs below. Hint Reg 1 Req 2 Req 3A Req 3B Print Should MSI add the instructional materials or sell the CDs without them? Should MSI add the instructional materials or sell the CDs without them? Add the Instructional Materials References Hill