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Morning Sky. Incorporated (MSI), manufactures and sells computer games. The company has several product lines based on the age range of the target market. MSI

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Morning Sky. Incorporated (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 aduits: howevet, the increasing affordabilty 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 inciuded games for younger children but now wants to expand its business to capitalize on changes in the industry. The company curfently has excess capacity and is investigating several possible ways to improve profitability. ISl's educationai products currently are sold without any supplementol materiais. The company considering the inclusion of nstructionat materials such as an overhead side presentation, potential test questions, and clossroom bulletin board materials for eachers. A summaty of the expected costs and reveaues for MSi's two options follows Required: 1. Based on the civen data. compute the increase or decrease in profit that would result if instructional materials were added to the 2. Should MSI add the instructional materials or sell the CDS without them? 3.0. Suppose that the higher ptice of the CDs with instructiond moterials is expected to ceduce demand to 2s.000 units. Complete the tabie given below based on this scenanio 3+b. Should MSi add the instructional materiais-or sell the GDs without them

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