E7-8 Analyzing Sell-or-Process-Further Decision [LO 7-2, 7-6]

a-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 Requirement 1 and 2 data. CD only Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) CD with Instructions Incremental 3-D. Should MSI add the instructional materials or sell the CDs without them? Sell the CDs without Instructional Materials O Add the Instructional Materials