MSl'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 ofthe expected costs and revenues for MSI's two options follows: CD with Instructional CD Only Materials Estimated demand 30 , 000 units 30 , 000 units Estimated sales price $ 26.00 $ 41.00 Estimated cost per unit Direct materials $ 4.25 $ 4.75 Direct labor 5.50 8.50 Variable manufacturing overhead 5 . 50 8 . 75 Fixed manufacturing overhead 5 . 00 5 . 00 Unit manufacturing cost $ 20 . 25 $ 27 . 00 Additional development cost $ 105 , 000 I 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 21,000 units. Complete the table given below based on Requirement'l and 2 data. 3-b. Should MSI add the instructional materials or sell the CDs without them? Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Product A Product B Product C Sales price $55.00 $65.00 $95.00 Variable costs per unit 19.80 10.00 27.40 Fixed costs per unit 5. 00 5.00 5.00 Required number of labor hours 2.00 2.50 4.00 Cordova currently is limited to 60,000 labor hours per month Required: Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour. (Round your answers to 2 decimal places.) Product A CM per DL hour Product B CM per DL hour Product C CM per DL hour Which product would be Cordova's rst choice to produce? 0 Product C n Drnrll IM A