Question: Check my work 07 5 E7-9 (Algo) Analyzing Sell-or-Process. Further Decision (LO 7-2, 7-6] Pent 404 2 po MSI's educational products are currently sold without
Check my work 07 5 E7-9 (Algo) Analyzing Sell-or-Process. Further Decision (LO 7-2, 7-6] Pent 404 2 po 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 potenti 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 Instructional CD Only Materials Estimated denand 27.00 units 27.000 units Estimated sales price $ 23. $38.00 Estimated cost per unit Direct noterials $2.25 $ 3.25 Direct labor 4.00 7.00 variable manufacturing overhead 4.80 7.25 Fixed manufacturing overhead 3.50 3.5e Unit nanufacturing cost $14.25 $ 21.00 Additional development cost $125,000 Required: 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 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 unts. Complete the table given below based on Requirement 1 and 2 data 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. Req Rega HA Reg 36 MC Gram HII
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