each question has 4 requarments:

3- same question

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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 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. 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 is considering outsourcing the production of the handheld control module used with some of its products. The company has received a bld from Monte Legend Co. (MLC) to produce 19,000 units of the module per year for $17.00 each. The following information pertains to MSi's production of the control modules $10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit $23 MSI has determined that it could eliminate all variable costs if the control modules were produced externally, but none of the fixed overhead is avoldable. At this time, MSI has no specific use in mind for the space that is currently dedicated to the control module production Required: 1. Compute the difference in cost between making and buying the control module. 2. Should MSI buy the modules from MLC or continue to make them? 3-a. Suppose that the MSI space currently used for the modules could be utilized by a new product line that would generate $39,000 in annual profit. Recompute the difference in cost between making and buying under this scenario. 3-b. Does this change your recommendation to MSI? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg JA Reg 30 Compute the difference in cost between making and buying the control module. Difference in Cost $10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit 2 7 $23 MSI has determined that it could eliminate all variable costs if the control modules were produced overhead is avoidable. At this time, MSI has no specific use in mind for the space that is currently production. Required: 1. Compute the difference in cost between making and buying the control module. 2. Should MSI buy the modules from MLC or continue to make them? 3-a. Suppose that the MSI space currently used for the modules could be utilized by a new prod in annual profit. Recompute the difference in cost between making and buying under this scena 3-b. Does this change your recommendation to MSI? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req Req 3B Should MSI buy the modules from MLC or continue to make them? Should MSI buy the modules from MLC or continue to make them? $10 4 2 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit $23 MSI has determined that it could eliminate all variable costs if the control modules were produced externally, but none of th overhead is avoidable. At this time, MSI has no specific use in mind for the space that is currently dedicated to the control production Required: 1. Compute the difference in cost between making and buying the control module. 2. Should MSI buy the modules from MLC or continue to make them? 3-a. Suppose that the MSI space currently used for the modules could be utilized by a new product line that would gener in annual profit. Recompute the difference in cost between making and buying under this scenario. 3-b. Does this change your recommendation to MSI? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Reg 38 Does this change your recommendation to MSI? Does this change your recommendation to MSI? age range of the target market MS some time accessories such as steering wheels, electronic tablets, and hand controls. To dato, 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 capitalire on changes in the industry. The company currently has excess capacity and is Investigating several possible ways to improve profitability MSI is considering eliminating a product from its ToddleTown Tours collection. This collection is aimed at children one to three years age and includes tours of a hypothetical town. Two products, The Pet Store Parade and The Grocery Getaway, have impressive sales. However , sales for the third CD in the collection, The Post Office Polke, have logged the others. Several other CDs are planned for this collection, but none is ready for production, MSIS Information related to the ToddleTown Tours collection follows: Post tegranted the tenant for Her Toddletown Tour Product Lines Pet Store Grocery Office Parade GetAVAY Polka Total Sales revenge $75,000 070,000 524,000 $169,000 Variable conta 33.000 29,000 19,000 61,000 Contribution margin 342.000 $61,000 $5,000 $ 88,000 Leasi Direct Fixed costs 5,800 4,600 4,600 15,000 Segment margin 636,200 36,400 400 $ 73,000 Lean Common fixed costat 7.500 7.000 2.400 16,900 Not operating Lacon (los) $20.700 $29.400 $(2.000) $ 55,100 "Allocated based on total sales revenue. MSI has determined that elimination of the Post Office Polka (POP) program would not impact sales of the other two items. The remaining fixed overhead currently allocated to the POP product would be redistributed to the remaining two products Required: 1. Calculate the incremental effect on profit if the POP product is eliminated. 2. Should MSI drop the POP product? 3-a. Calculate the incremental effect on profit if the POP product is eliminated. Suppose that $2,000 of the common fixed costs could be avoided if the POP product line were eliminated 3-b. Should MSI drop the POP product? Complete this question by entering your answers in the tabs below. Rea 38 Reg 1 R2 Reg 3A Should Mst drop the POP product? Should MSi drop the POP product? Reg1 Reg 3A > ed Homewo Required information The following information applies to the questions displayed below) Morning Sky, Inc. (M5, mantectures and sells computer games. The company has several product lines based on the age range of the target market. MS sells both individual games as well as packaged sets. All games are in CD format, and some le 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 markets 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 igricant increase in sales to younger children MSI has always included games for younger children but now wants to expand its business to capture on changes in the industry. The company currently has excess capacity and is Investigating several possible ways to improve profitability MSi considering eliminating a product from its ToddleTown Tours collection. This collection is aimed at children one to three year age and includes us of a hypothetical town. Two products, The Pet Store Parade and The Grocery Getaway have impressive sales. However, sales for the third in the collection, The Post Office Polka, have logged the others. Several other CDs are plann for this collection, but none is ready for production MSIS information related to the ToddleTown Tours collection follows: dette for Toddletown Product Lines Pet Tot Store Crocery ottice Parade Get Polka sota Totes reme $75,000 $70,000 $20,000 $763,000 Variable data 3,000 20.00 12.05 $1,000 Contritio argis 343,900 141,000 3 5,005 $ 30,000 La Direct Pined coats 5.100 4. 4.60 15,000 et margin 036,200 12,00 400,000 Lee Coon tiedot 3.000 2.400 16.900 Het operating con (la) $20,100 329,400 52, 56,100 "Allocated based on total sales revenue. MSi has determined that elimination of the Post Office Polka (POP) program would not impact sales of the other two items. The remaining fixed overhead currently allocated to the POP product would be redistributed to the remaining two products Required 1. Calculate the incremental effect on profit if the POP product is eliminated 2. Should MSI drop the POP product? 3. Calculate the incremental offect on profit if the POP product is elminated. Suppose that $2.000 of the common feed costs com be avoided if the POP product line were eliminated 3-b. Should MSI drop the POP product? Complete this question by entering your answers in the tabs below. kes1 RAJA Req30 Calculate the incremental effect on profit of the POP product is eliminated. Suppose that $2,000 of the common fed costa could be avoided the POP product line were eliminated ET POR Req2 Req30 > age some utilize accessories such as steering manufactured all the CDs itself as well as the accessories and packaging 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 is considering eliminating a product from its ToddleTown Tours collection. This collection is aimed at children one to three years of age and includes tours" of a hypothetical town. Two products, The Pet Store Parade and The Grocery Getaway, have impressive sales. However, sales for the third CD in the collection, The Post Office Polka, have logged the others. Several other CDs are planned for this collection, but none is ready for production MSI's Information related to the ToddleTown Tours collection follows: Segmented Income statement for HBI'S Toddletown Tour Product Lines Pet Post Store Grocery office Parade Getaway Polka Sales revenue $75,000 $70,000 524.000 Variable costa 33,000 29.000 19,000 Contribution margin 342,000 $41,000 $ 5,000 Less Direct Fixed costa 5,800 4,600 4.600 Segment margin 536,200 $36,400 400 Lossi Connon fixed costa 7.500 7.000 2.400 Net operating Incone (los) 528,700 529,400 $(2.000) Total $169,000 81.000 $68,000 15,000 $ 73,000 16.900 $ 56,100 "Allocated based on total sales revenue. MSI has determined that elimination of the Post Office Polka (POP) program would not impact sales of the other two items. The remaining fixed overhead currently allocated to the POP product would be redistributed to the remaining two products. Required: 1. Calculate the incremental effect on profit if the POP product is eliminated, 2. Should MSI drop the POP product? 3-a. Calculate the incremental effect on profit if the POP product is eliminated. Suppose that $2,000 of the common fixed costs could be avoided if the POP product line were eliminated. 3-b. Should MSI drop the POP product? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 3B Should MSI drop the POP product? Should MSI drop the POP product?