E$7-9($Algo$)$ Analyzing Sell$-$or$-$Process$-$Further Decision $[$LO $7-2,7-6]$

MSI's educational products currently are 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 MSl$\text{'}$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 $20,000$ units. Complete the table given below based on this scenario.

$3-$b$.$ Should MSI add the instructional materials or sell the CDs without them?