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 accessorles such as steering wheels, electronic tablets, and hand controls. To date, MSI has developed and manufactured all the CDs itself as well as the accessorles and packaging for all of its products. The gaming market has tradltionally been targeted at teenagers and young adults; however, the Increasing affordability of computers and the incorporation of computer actlvitles 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's educational products currently are sold without any supplemental materlals. The company is considering the Inclusion of Instructional materlals 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 MSI's two options follows: Requlred: 1. Based on the given data, compute the Increase or decrease in profit that would result If Instructional materlals were added to the CDs. 2. Should MSI add the Instructional materlals or sell the CDs without them? 3-a. Suppose that the higher price of the CDs with Instructional materlals is expected to reduce demand to 21,000 units. Complete the table given below based on this scenarlo. 3-b. Should MSI add the Instructional materlals or sell the CDs without them? Complete this question by entering your answers in the tabs below. Based on the given data, compute the increase or decrease in profit that would result if instructional materials were added to the CDs. Should MSI add the instructional materials or sell the CDs without them? Should MSI add the instructional materials or sell the CDs without them? 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 this scenario. Complete this question by entering your answers in the tabs below. Should MSI add the instructional materials or sell the CDs without them? Should MSI add the instructional materials or sell the CDs without them
