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CD Only 29,000 units $ 25.00 CD with Instructional Materials 29,000 units $ 40.00 Estimated demand Estimated sales price Estimated cost per unit Direct materials
CD Only 29,000 units $ 25.00 CD with Instructional Materials 29,000 units $ 40.00 Estimated demand Estimated sales price Estimated cost per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit manufacturing cost Additional development cost $ 3.75 5.00 5.00 4.50 $ 18.25 $ 4.25 8.00 8.25 4.50 25.00 $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 CDs. 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 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 Req Reg 3B Based on the given data, compute the increase or decrease in profit that would result if instructional materials were added to the CDs. CD Only CD with Instructional Materials Incremental Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req 3A Req 3B Should MSI add the instructional materials or sell the CDs without them? 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 Req2 Req 3A Req 3B 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. CD Only CD with Instructional Materials Incremental Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Should MSI add the instructional materials or sell the CDs without them? Should MSI add the instructional materials or sell the CDs without them?
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