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...

Answer all three questions including (3A and 3B!)

Extracted text: 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 32,000 units $28.00 CD with Instructional Materials 32,000 units $ 43.00 Estimated demand Estimated sales price Estimated cost per unit Direct materials $5.25 5.75 9.50 9.75 6.50 6.50 6.00 $ 24.25 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit manufacturing cost Additional development cost 6.00 $ 31.00 $105,000 Required: 1. Based on the given data, compute e 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 22,000 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 Req 2 Req 3A Req 3B Based on the given data, compute the increase or decrease in profit that would result if instructional materials were added to the CDs. CD with Instructional Materials CD Only Incremental CSD Prev Next >