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Required information The following information applies to the questions displayed below! Morning Sky, Inc. (MS), 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 format and some utilize accessories such as steering wheels, electronic tablets, and hand controls. To date, MSI has developed and manufactured on the CDs itself as well as the accessories and packaging for all of its products The gaming market has traditionally been targeted at teenagers and young adults, however the increasing affordability of computers and the incorporation of computer activities 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 as excess capacity and is Investigating several possible ways to improve profitability 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 two options follows CD Only 40,000 units 200 CB with tatutional Materiale 48.000 demand terlated sale price Estated content Direet starials Direct labor Variable manufacturing overhead Pixed manufacturing overhead Unit manufacturing cout Maditional development cont 02.00 9.50 9.50 10.00 191.00 8 2.75 13.50 12.15 10.00 19.00 $105.000 Required: 1. Based on the given data, compute the increase or decrease in profit that would result of instructional materials were added to the CDs 2. Should MSI add the instructional materials or sell the CDs without them? 3a. Suppose that the higher price of the CDs with instructional materials is expected to reduce demand to 22.000 units. Complete the table given below based on Requirement 1 and 2 data. 3-6. Should MSI add the instructional materials or sell the CDs without them? Complete this question by entering your answers in the tabs below. Reg1 Reg2 Red 3A R38 Based on the given data, compute the increase or decrease in profit that would result of instructional materials were added to the CDs Co wie estructional incremental cb Only Sal Revenue Variable Cools Contribution Margin Additional Development Costs Die Profit (Los) Req2 > Required information The following information apples to the questions displayed below! Morning Sky, Inc. (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 gomes as well as packaged sets. Al games are in CD format and some utile accessories such as steering wheels, electronic tablets, and hand controls. To date. MSi has developed and manufactured all the CDs itself as well as the accessories and packaging for all of its products The gaming market has traditionally been targeted at teenagers and young adults, however the increasing affordability of computers and the incorporation of computer activities 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 are currently sold without any supplemental materials. The company is considering the inclusion of Instructional materials such as an overhead side presentation, potential test questions, and classroom bulletin board materials for teachers. A summary of the expected costs and revenues for MS's two options follows CD with Instructional CD Only Materials Estimated demand 40,000 white 40,000 white tatimated wales price $14.00 # $1.00 Estimated cost per unit Direct materials $ 2.00 2.75 Direct labor 9.50 13.50 Variable manufacturing overhead 3.50 12.75 Tixed manufacturing overhead Unit manufacturing cont $31.00 $39.00 Additional development cost 5105,000 10.00 10.00 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? 3-0. Suppose that the higher price of the CDs with instructional materials is expected to reduce demand to 22.000 unts. Complete the table given below based on Requirement 1 and 2 data. 36. Should MSI add the instructional materials or sell the CDs without them? Complete the question by entering your answers in the tabs below. Reg1 Reg2 Red 3A Reg 38 Should MSI add the instructional materials or sell the CDs without them? Stodid MS add the instruction were rode CDs without them? Required information The following information applies to the questions displayed below) Morning Sky, Inc. (MSA), 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 accessories such as steering wheels, electronic tablets, and hand controls. To date,MSi has developed and manufactured all the CDs itself as well as the accessories and packaging for all of its products. The gaming market has traditionally been targeted at teenagers and young adults, however, the increasing affordability of computers and the incorporation of computer activities 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 MSIY 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 only 40.000 unite $ 34.00 CD WIEN Instructions Naturale 40,000 wita $1.00 Estimated demand Estimated sales price Estimated cost per unit Direct materiais Direct labor Variable manufacturing overhead Tied manufacturing overhead thoit sanatacturing cost Mattonal development cost 52.00 9.50 9.50 10.00 5 31.00 $ 2.15 15.50 12.75 10.00 39.00 9105,000 Required: 1. Based on the given data, compute the increase or decrease in profit that would result of 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 22,000 units. Complete the 3-b. Should MSI add the instructional materials or sell the CDs without them? Complete this question by entering your answers in the tabs below. R1 2 Req3A Reg 38 Suppose that the higher price of the CDs with instructional materials is expected to reduce demand to 22,000 units. Complete the table given below based on Requirement 1 and 2 data CD Only CD with instructional Materials Incremental Sales Reven Variable Costs Contribution Margin Addisonal Development Costs Diferenta Pro LOSS) ( Req2 Rug 30 > Required information [The following information applies to the questions displayed below) Morning Sky, Inc. (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 gomes as well as packaged sets. All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets, and hand controls. To date, MSi has developed and manufactured all the CDs itself as well as the accessories and packaging for at of its products The gaming market has traditionally been targeted at teenagers and young adults; however, the increasing affordability of computers and the incorporation of computer activities into junior high and elementary school curriculums has led to a significant increase in sales to younger children. MSI has always included gomes 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 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 CD Only MARIAL 40.000 unite 40,000 white $14.00 $ 51.00 Estimated demand Latinated sales price Tatimated cost per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit manufacturing coat Additional development cont 32.00 9.50 9.50 10.00 $31.00 . 2.75 13.50 12.75 10.00 S 19.00 5105,000 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 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 22,000 units. Complete the 3-6. Should MSI add the instructional materials or sell the CDs without them? Complete this question by entering your answers in the tabs below. Reg38 Reg 1 Reg 2 Rea 3A Should MSI add the instructional materials or sell the CDs without therm? Should MSI add the instructional materials or sell the CDs without them?