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MSI's educational products are currently sold without any supplernental materials. The company is considering the inclusion of Instructional materials such as an overhead slide presentation,

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MSI's educational products are currently sold without any supplernental 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: Insteettomai CD Only 29,000 units $ 25.00 29,000 units $10.00 Estimated de and Estimated sales price Estimated cost per unit Direct materials Direct labor Variable manufacturing overhead Faxed manufacturing overhead Unit manufacturing coat Additional development cost 1.25 8.00 $ 3.75 5.00 5.00 4.50 $18.25 1.50 25.00 5805.000 Required: 1. Based on the given data, compute the increase or decrease in profit that would result if instructional materials were added to the 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? 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 CO with Instructional Materials Incremental Sales Revenue Variable Costs Contribution Margin Additional Development Costa Differential Profit (Loss) 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. CD Only CD with Instructional Materials Incremental Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss)

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