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please do not flag questions. it doesn't let me edit them over my mobile MSI's educational products classroom bulletin board materials for teachers. A summary
please do not flag questions. it doesn't let me edit them over my mobile
MSI's educational products classroom bulletin board materials for teachers. A summary of the expected costs and revenues for MSI's two options follows: are currently sold without any supplemental company is considering the inclusion of instructional materials such as an overhead slide presentation, potential test ques lions, and CD OnlyMaterials 25,000 units 25,000 units S 21.00 36 00 Estimated sales price Estimated cost per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead S 1.75 3 00 3.00 2.50 $ 225 6.00 6.25 Unit manufacturing cost Additional development cost 10.2 17.00 $105,000 Required: 1. Based on the given data, Compute the increase or decrease in profit that would result if instructional materials were added to the CDs CD Only Increm Materials 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? O Sell the CDs without Instructional Materials e Add the Instructional Materials 3a Suppose that the higher price o the CDs with instructional materials is expected to red ice de end to D unit C pletene r ble a ver eo b se rement n at. Only Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Prot (Loss) 3-b. Should MSI add the instructional materials or sell the CDs without O Sell the CDs without Instructional Materials O Add the Instructional Materiabs MSI's educational products are currently sold without any supplemental materials. The company is considering the inclusion of instructional materials such as an overthead slide presentation, potential test que- ions, and classroom bulletin board materials for teachers. A summary of the expected costs and revenues for MSI's two options follows Instructional CD Only 25,000 units25,000 units Estimated sales price Estimated cost per unit 21.0036.00 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead S 1.75 3.00 3.00 S 2.25 6.00 6.25 Unit manufacturing cost Additional development cost $ 10.25 $ 17.00 $105,000Step by Step Solution
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