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 teachersA summary of the expected costs and revenues for MSI's two options follows: only units with Instructional Materials units Estimated demand Estimated sales price Estimated cost per Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit manufacturing cast Additional development cost Required: Based on the given data, compute the increase or decrease in profit that would result instructional materials were added to the Should MSI add the instructional materials or sell the without them? a Suppose that the higher price of the CDs with instructional materials is expected to reduce demand to unitsComplete the table given below based on this scenario. bShould MSI add the instructional materials or sell the CDs without them?
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 MSI's two options follows:
tabletableCD withInstructionalMaterialsEstimated demand, units, unitsEstimated sales price,$$