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how to solve Required information Materials 38,000 units 49.00 $ $ 8.75 12.50 CD Only Estimated demand 38,000 units Estimated sales price $ 33.00 Estimated
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Required information Materials 38,000 units 49.00 $ $ 8.75 12.50 CD Only Estimated demand 38,000 units Estimated sales price $ 33.00 Estimated cost per unit Direct materials $ 6.25 Direct labor 8.50 Variable manufacturing 8.50 overhead Fixed manufacturing 9.00 overhead Unit manufacturing cost $ 32.25 Additional development cost 11.75 9.00 $ 42.00 $ 105,000 Required information 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 Req 2 Reg 3A Req 3B Based on the given data, compute the increase or decrease in profit that would result if instructional materials were added to the CDs. Req 1 Reg 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 the CDs. CD Only CD with Instructional Incremental Materials Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) Req2 > Required information Req 1 Reg 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? Required information Reg 1 Reg 2 Reg 3A Req30 Suppose that the higher price of the CDs with instructional materials is expected to reduce derand to 20,000 units. Complete Rhe table given below based on Regulrement 1 and 2 data. CD Only CD with Instructional Materials Incremental Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) Required information Req1 Req2 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? Step by Step Solution
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