Check my work 00 8 Required information Part 3 of 3 3 MSI's educational products...

70.2K

Verified Solution

Question

Accounting

imageimage

Check my work 00 8 Required information Part 3 of 3 3 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: 3 points CD Only 33,000 units $ 28.00 CD with Instructional Materials 33,000 units S 44.00 8 02:32:55 Estimated demand Estimated sales price Estimated cost per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit manufacturing cost Additional development cost eBook $ 5.75 7.00 7.00 6.50 $ 26.25 S 6.25 10.00 10.25 6.50 $ $ 33.00 $150,000 Hint Print References 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 18,000 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? Check my work 00 8 Required information Part 3 of 3 3 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: 3 points CD Only 33,000 units $ 28.00 CD with Instructional Materials 33,000 units S 44.00 8 02:32:55 Estimated demand Estimated sales price Estimated cost per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit manufacturing cost Additional development cost eBook $ 5.75 7.00 7.00 6.50 $ 26.25 S 6.25 10.00 10.25 6.50 $ $ 33.00 $150,000 Hint Print References 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 18,000 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

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students