Really need help with questions 1,2,3a and 3b
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 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 with CD Only 29,000 unita $ 25.00 Instructional Materials 29,000 unita $40.00 $ Estimated demand Estated sales price mated cost per unit Direct materials Direct labor Variable manutacturing overhead Fixed manufacturing overhead Unit manufacturing coat Additional development coat 3.75 5.00 5.00 5 4.25 8.00 8.25 4.50 $ 25.00 $ 105,000 $ 18:25 Pound Required information menu 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 20,000 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. Reg 1 Reg 2 Req3A Req 30 Based on the given data, compute the increase or decrease in profit that would result of 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) quired to lation wy. CDs. 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 instruction materials or sell the CDs without them? Complete this question by entering your answers in the tabs below. Reg 1 Req2 Req Reg 30 Should MSI add the instructional materials or sell the CDs without them? 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 3A Reg 38 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 (L.) Required information Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req Req 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?
