Required information E76 through E7.10. The following information applies to the questions displayed below Moming Sky, Inc. (MSI), manufactures and sells computer games. The company has several product lines based on the age range of the target market MSI sets both individual games as well as packaged sets. Al games are in CD format, and some titre accessories such as steering wheels, electronic tables and hand controls. To date, MS has developed and manufactured all the CDs itself as well as the accessones and packaging for all of its products. The gaming market has traditionally been targeted at teenagers and young adut 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. MS 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) Only MSIS educational products are currently sold without any supplementales The company is considering the inclusion of Instructional materials such as an overhead slide gresentation, potential test questions, and classroom bulletin board materials for teachers. A summary of the expected costs and revenues for two options follows es with truet Materiale Estimated demand 30.000 units taited sales price 30.000 $26.00 Talimated cost per unit 5 41.00 Direkter 16.25 + 4.75 Direct labor 5.50 Velletrin 8.50 overhead 5.50 Tidacturing overhead 5.00 5.00 Onit masing 20.35 27.00 additional development $ 105,000 Required: 1. Based on the given data, compute the increase or decrease in profit that would result instructional materials were added to the COs 2. Should MSI add the instructional materials or sell the CDs without them? 3-2. 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 3.5. Should MSI add the instructional materials or set the CDs without them? Complete this question by entering your answers in the tabs below Reet R2 RA Reg 2 Based on the given data, compute the increase or decrease pro that would con materials were added to the CDs CD Only CD with strona Sales Revue Variable Contribution Margien Additional Development Costs Dental Profil Rad 2) Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Red 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 Differenti Profit (Loss) thequired information E7-6 through 87.10. The following information apples to the question duplayed below! Morning Sky, Inc. (MS manufactures and sells computer games that company has several product lines based on the age range of the target market. MS ses both individual games as well as packaged sets All games we in CD format and some time accessories such as steering wheels, electronic tablets, and and control. To date, MSI developed and manufactured at the cost well as the accessories and packaging for all of its products The gaming malet has traditionally been targeted a teenagers and young adults, however, the increasing affordability of computers and the incorporation of computer die Into junior high and elementary school curriculum has led to can creme in sales to younger children MS 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 probability 7.9 (Algo) Analyzing Sell-or-Process Further Decision (LO 7-2.7-6) MSI educational products are currently sold without any supplemental materials. The company is considering the inclusion of Instructional materials such as an overhead slide presentation, potent test questions, and classroom bulletin board materials for teachers. A summary of the expected costs and revenges for MST's two options follows OVES Tretinal Oly Materiale Etted dead DESIRE 30.000 Telepre pit Bratis . . 8. Variable ..15 rechend Parturi mit 105,000 . 11.08 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 add the instructional materials or sell the CDs without the 3. Suppose that the higher price of the CDs with instructional materials is expected to reduce demand to 21000 units Complete the 3-5. Should MSI add the instructional materials or sell the CDs without them? Complete this question by entering your answers in the tabs below. R2 Based on the given dute, compute the increase or decrease in profit that would result instructional materials were added to CD Only Commental Mata Sales Revere Cote Contribution Margin Anal events Prof. Raya > Reg 1 Reg 2 Req Reg 3B 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 (L03)