E7-9 (Algo) Analyzing Sell-or-Process-Further Decision (LO 7-2, 7-6) 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 39,000 units $ 35.00 CD with Trastructional Materials 39,000 units $ 50.00 Estimated demand Estimated sale price Estimated cost per unit Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead Unit manufacturing cost Additional development cost 66.75 9.00 9.00 9.50 $ 34.25 $ 9.25 13.00 12.25 9.50 $ 44.00 $105,000 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 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 Reg 2 Reg 3A Reg 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 CD Only Instructional Incremental Materials Sales Revenue 1,365,000 $ 1,950,000 $ 585,000 Variable Costs 965,250 1,345,500 380,250 Contribution Margin Additional Development Costs Differential Profit (Loss) Re Reg 2 > 3-b. Should MSI add the instructional materials or sell the CDs without them? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 3B Should MSI add the instructional materials or sell the CDs without them? Add the Instructional Materials Should MSI add the instructional materials or sell the CDs without them? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 38 Suppose that the higher price ofiche CDs with instructional materials is expected to reduce demand to 21.000 units. Complete the table given below based on Requirement 1 and 2 data. CD with CD Only Instructional Incremental Materials Sales Revenue 1,365,000 724,500 $ Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss)