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please make sure the solution pits the page Required information E7-6 through E7-10. The following information applies to the questions displayed below) Morning Sky, Inc.
please make sure the solution pits the page
Required information E7-6 through E7-10. 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 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 tenngers and young adults, however, the increasing offordability 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 4 E7-9 (Algo) Analyzing Sell-or-Process-Further Decision (LO 7-2, 7-6) 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 Only 41,000 units 5 25.00 CD with Instructional Materiala 41,000 units $ 52.00 Estimated demand Istinated sales price Estimated cost per unit Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing over head 5 $ 1.50 2.00 2.00 2.00 1.75 5.00 5.25 2.00 E7-9 (Algo) Analyzing Sell-or-Process-Further Decision (LO 7-2, 7-6) 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 Only 41,000 unita $ 25.00 co with Instructional Materials 41,000 unita 5 52.00 Estimated demand Knimated sales price matinated cost per unit Direet materiale Direct labor Variable manufacturing overhead Pixed manufacturing overhead Unit manufacturing cout Additional development cont $ 1.50 2.00 2.00 2.00 5 7.50 1.75 5.00 5.25 2.00 $14.00 $105,000 CDs Required: 1. Based on the given dato, 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 21000 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? Complete this question by entering your answers in the tabs below. Req1 Reg 2 Req Reg 38 DAN UILERRRR HECHT WURF SULARIN WEL Required information 3-a. Suppose that the migner price or the cus with insucional materials is expected to reduce emana o 21000 units, compiere une table given below based on Requirement 1 and 2 data. 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. Reg 1 Reg 2 Req 3A Req 38 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 CD with Instructional Materials Incremental Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) Red Roq 2 > 1. DOSEU U U yiven usta, compow Me LIESE UI VELIUOSE H Prom MIDL WULI TUSURHUSU UCUN nou wee Bueu wn 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 1 and 2 data. 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. Reg 1 Reg 2 Reg Req 3B Should MSI add the instructional materials or sell the CDs without them? Should MSI add the instructional materials or sell the CDs without them? 4. JUURU III buy we WULLIUSTO HOLENDIS UICHUCUS WIWIVUK 3-a. Suppose that the higher price of the CDs with instructional materials is expected to reduce demand to 21000 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? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Reg 38 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 1 and 2 data CD Only CD with Instructional Materials Incremental Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) Required information 1. Daseu on we yiven udta, compute e muitos U VELICOS PURULIOL WULIU IESURH HUULLI III is wel duuuu w we 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 1 and 2 data. 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. Reg 1 Reg 2 Req 3A Reg 38 Should MSI add the instructional materials or sell the CDs without them? Should MSI add the instructional materials or sell the CDs without them?
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