Check my w investigating several possible ways to improve profitability MSF'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 MS's two options follows CD Only 30,000 units $26.00 CD vith Instructional Materials 30,000 units 541.00 Estimated demand Tatimated sales price Istimated cont per unit Direct materials Direct Labor Variable manufacturing overhead Fixed manufacturing overhead Unit manufacturing cont Additional development cont $4.25 5.50 5.50 5.00 5 20.25 4.25 8.50 8.75 5.00 $ 27.00 $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 21000 units. Complete the 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. 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 21,000 units. Complete 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 Reg 2 Req 38 Based on the given data, compute the increase or decrease in profit that would result if instructional materials were added to the CDs CO Only CD with instructional Materials Incremental Sales Revenue Variabio Costa Contribution Margin Additional Development Costs Drobial Profit (055) Reg 2 > Required information 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 21,000 units. Compl table given below based on Requirement 1 and 2 data. 3-b. Should MSI add the instructional materials or sell the CDs without them? S4 Complete this question by entering your answers in the tabs below. 3ook Hint Req Reg 2 Req Reg 30 Print 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. Terences CD Only CD with Instructional Materials Incremental Sales Revenue Variable costs Contbution Margin Adokonal Development Costs Differential Profit (Loss)
