Required information [The following information applies to the questions displayed below.] Morning Sky. Incorporated (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 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. ASI's educational products currently are sold without any supplemental materials. The company is considering the inclusion of istructional materials such as an overhead slide presentation, potential test questions, and classroom bulletin board materials for eachers. A summary of the expected costs and revenues for MSI's two options follows: 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 21,000 units. Complete the table given below based on this scenario. 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. Based on the given data, compute the increase or decrease in profit that would result if instructional materlals were added to the CDs. Required: cos. 2. Siould MSI add the instructional melerists or sell the CDs without themi? 3.a. Suppose that the higher price of the CDs with instructionsi materias is expected to roduce demand to 7 Co0 saits Compt table given below based on this scenanio. 3-b, should MSi add the instructionsi materiad of soll the CDs without them? Cemplete this quevtion by entering yesp answers in the tabs below. Shsuls MSI add the instrucbonal materiais of sell the Coy without then? table givert below based on this scecerio. 3. b. Should MSi add the inveructional meterials of uet the CDs a mout thent. Complete this questien by entering vour antwers in the tatt belaw. the table given beisw based on this crerario. Pecquired: 1. Based on the ghein data, compute the incense of dectease in prodt that would resuit if instructional materials were odded to CD 2. Snould Msi add the instructions materias or set the CDs without them? 3-a. Suppose tha the highet price of the CDs wath instructisns matersis is expected to sedice demand to 22.000 units. Compl table given below based on this scensisio. 3-b. She.id MSi sdd the instructional materais er sel the COs without then? Comptete this questeas by enteritig your antwers in the tabs below. Shoud test ads the inkiructeral materias or seb the CDt without tham
