Answer-1)-
Morning Sky Inc. (MSI) | |||
Particulars | CD Only | CD with instructions Materials | Incremental |
(a) | (b) | (c=a-b) | |
Sales revenue | 25000 units*$21 per unit=$525000 | 25000 units*$36 per unit=$900000 | 375000 |
Less:- Variable costs | 25000 units*$7.75 per unit=$193750 | 25000 units*$14.50 per unit=$362500 | 168750 |
Contribution margin | 331250 | 537500 | 206250 |
Less-Additional Developments costs | Nil | 105000 | 105000 |
Differential profit (loss) | 331250 | 432500 | 101250 |
The profit will be increase if instructional materials were added to the CDs.
2)- MSI should add the instructional materials due to incremental profit.
3-a)-
Morning Sky Inc. (MSI) | |||
Particulars | CD Only | CD with instructions Materials | Incremental |
(a) | (b) | (c=a-b) | |
Sales revenue | 25000 units*$21 per unit=$525000 | 20000 units*$36 per unit=720000 | 195000 |
Less:- Variable costs | 25000 units*$7.75 per unit=$193750 | 20000 units*$14.50 per unit=290000 | 96250 |
Contribution margin | 331250 | 430000 | 98750 |
Less-Additional Developments costs | Nil | 105000 | 105000 |
Differential profit (loss) | 331250 | 325000 | -6250 |
3-b)- MSI should sell the CDs without instructional materials due to incremental loss.
MSI's educational products are currently sold without any supplemental materials. The company is considering the inclusion...
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 with Instructional Materials CD Only 42,000 units 26.00 42,000 units 53.00 Estimated demand Estimated sales price Estimated cost per unit Direct materials $ 2.00 $ 5.50 2.25 Direct labor 2.50 5.75...
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, potental 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 42.000 units $ 26.00 CD with Instructional Malerials 42,000 units $ 53.00 Estimated demand Estimated sales price Estimated cost per unit Direct materials Direct labor Variable manufacturing overhead Foxed manufacturing...
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 29,000 units $ 25.00 CD with Instructional Materials 29,000 units $ 40.00 Estimated demand Estimated sales price Estimated cost per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing...
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 31,000 units $ 27.00 CD with Instructional Materials 31,000 units $42.00 Estimated demand Estimated sales price Estimated cost per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead...
MSI's educational products are currenty sols 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 Instructional with CD OnlyMaterials 43,000 unils 43,000 units Esimated demand Estimated sales price Estimated cost per unit S 27.00S 54.00 Direct materials Direct labor Variable manufacturing overhead Fxed manufacturing overhead S...
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 text questions, and classroom bulletin board materials for teachers. A summary of the expected costs and revenues for MSI's two options follows: CD with CD Only 27.000 units $ 23.00 Materials 27.000 units 38.00 $ $ $ 2.75 400 Ested demand Estimated sales price Esmated cost per unit Direct materials Direct labor Variable manufacturing...
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 36,000 units $ 30.00 CD with Instructional Materials 36,000 units $ 47.00 $ 5.25 Estimated demand Estimated sales price Estimated cost per unit Direct materials Direct labor Variable manufacturing overhead...
E7-8 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 with Instructional Materials 40,000 units S 51.00 CD Only 40,000 units 34.00 Estimated demand Estimated sales price Estimated cost per unit Direct materials $ 2.75...
E7-8 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 sych 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 with Instructional Materials 32,000 units $ 43.00 CD Only 32,000 units $ 28.00 Estimated demand Estimated sales price Estimated cost per unit Direct materials...
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 CD with Instructional Materials Estimated demand 29,000 units 29,000 units Estimated sales price $ 25.00 $ 40.00 Estimated cost per unit Direct materials $ 3.75 $ 4.25 Direct labor 5.00...
> This is very clear and concise. Thank you.
koda Sun, Nov 21, 2021 10:48 AM