E7-9 (Algo) Analyzing Sell-or-Process-Further Decision (LO 7-2, 7-6) Part 3 of 3 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: 3 points CD with Instructional Materiala 38,000 units $ 49.00 CD Only 38,000 units $ 33.00 eBook Hint Estimated demand Estimated sales price Estimated cost per unit Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead Unit manufacturing cost Additional development cost Print $ 6.25 8.50 8.50 9.00 $ 32.25 $ 8.75 12.50 11.75 9.00 $ 42.00 $105,000 References 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 20.000 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. CD 498 MA Pro HE Next > Check my work Part 3 of 3 Required information 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 20.000 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? 3 points Complete this question by entering your answers in the tabs below. eBook Hint Print Reg 1 Reg 2 Reg 3A Reg 38 Based on the given data, compute the increase or decrease in profit that would result of instructional materials were added to the CDs. References CD Only CD with Instructional Materials Incremental Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) Reg 2 > Reg1 Required information Aditional development coBC SIUS, VOU 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 20,000 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. es Req 1 Reg 2 Req 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 7 of 8 Next >
