MSI's educational products are currently sold without any supplemental materials. The company is considering the inclusion of instructional materials 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: CD with Instructional Materials CD Only 40,000 units Estimated demand Estimated sales price Estimated cost per unit 40,000 units 34.00 $ 51.00 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $ 2.00 9.50 9.50 10.00 S 31.00 $2.75 13.50 12.75 10.00 S 39.00 $105,000 Unit manufacturing cost Additional development cost 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. CD with Instructions Materials CD Only Incremental s 1,360,00o S 2,040,000 Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) 2. Should MSI add the instructional materials or sell the CDs without them? Sell the CDs without Instructional Materials Add the Instructional Materials