Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed 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 Required: CD Only 50,000 units $ 20.00 LV ALIE Instructional Materials. 50,000 units $ 35.00 $ 1.25 $ 1.75 2.50 5.50 2.50 5.75 2.00 2.00 $ 8.25 $ 15.00 $65,000 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 32,000 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? Complate this question by entering your answers in the tabs below. Req 3A 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. Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) CD Only CD with Instructional Materials Incremental CD Only Instructional Materials Estimated demand Estimated sales price 50,000 units 50,000 units $ 20.00 $ 35.00 Estimated cost per unit Direct materials $ 1.25 $ 1.75 Direct labor 2.50 5.50 Variable manufacturing overhead 2.50 5.75 Fixed manufacturing overhead 2.00 2.00 Unit manufacturing cost $ 8.25 $ 15.00 Additional development cost $65,000 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 32,000 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. Req 1 Req 2 Req 3A Req 38 Should MSI add the instructional materials or sell the CDs without them? Should MSI add the instructional materials or sell the CDs without them? 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 CD Only 50,000 units $ 20.00 SUN WASH Instructional Materials 50,000 units $35.00 $ 1.25 $ 1.75 2.50 5.50 2.50 5.75 2.00 2.00 $8.25 $ 15.00 $65,000 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 32,000 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. Req 1 Req 2 Req 3A Req 38 Suppose that the higher price of the CDs with instructional materials is expected to reduce demand to 32,000 units. Complete the table given below based on Requirement 1 and 2 data. Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) CD Only CD with Instructional Materials Incremental Estimated demand Estimated sales price Estimated cost per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead i Unit manufacturing cost Additional development cost Required: CO Only 50,000 units $ 20.00 CU WAL Instructional Materials 50,000 units $ 35.00 $1.25 $ 1.75 2.50 5.50 2.50 5.75 2.00 2.00 $8.25 $ 15.00 $65,000 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 32,000 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. Req 1 Req 2 Req 3A Req 38 Should MSI add the instructional materials or sell the CDs without them? Should MSI add the instructional materials or sell the CDs without them

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Management A Strategic Emphasis

Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins

7th edition

77733770, 978-0077733773

More Books

Students also viewed these Accounting questions

Question

=+3. What do the terms KBR and KPI stand for? Who defines them?

Answered: 1 week ago