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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 MaterialsEstimated demand 28,000 units 28,000 unitsEstimated sales price $ 24.00 $ 39.00Estimated cost per unitDirect materials $ 3.25 $ 3.75Direct labor 4.50 7.50Variable manufacturing overhead 4.50 7.75Fixed manufacturing overhead 4.00 4.00Unit manufacturing cost $ 16.25 $ 23.00 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: 28000
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MSI’s educational products are currently sold without any supplemental materials. The company is con...
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