07 5 Part 1 of 4 Required information The following information applies to the questions displayed below! Morning Sky, Inc. (MSI), manufactures and sells computer games. The company has several product lines based on the age range of the target market. MSi sells both individual comes as well as packaged sets. All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets, and hand controls. To date, MSI has developed and manufactured all the CDs itself as well as the accessories and packaging for all of its products The gaming market has traditionally been targeted at teenagers and young adults; however, the increasing affordability of computers and the incorporation of computer activities into junior high and elementary school curriculums has led to a significant increase in sales to younger children MSi has always included games for younger children but now wants to expand its business to capitalize on changes in the industry. The company currently has excess capacity and is Investigating several possible ways to improve profitability 1 pos Hend MSi hos been approached by a fourth grade teacher from Portland about the possibility of creating a specially designed game that would be customized for her classroom and environment. The teacher would like an educational game to correspond to her classroom coverage of the history of the Pacific Northwest, and the state of Oregon in particular. MSi has not sold its products directly to teachers or school systems in the past, but its Marketing Department identified that possibility during a recent meeting The teacher has offered to buy 2.400 copies of the CD at a price of $5.00 each. MSI could easily modify one of its existing educational programs about US history to accommodate the request. The modifications would cost approximately $390. A summary of the Information related to production of MSI's current history program follows: Haferences 03.10 0.3 Direct materiale Diret Labor Variable manufacturing overhead Pixed an overhead TOTAL cost per 15 1200 Required: 1. Compute the incremental profit for loss) from accepting the special order, 2. Should MSI accept the special order? 3. Suppose that the special order had been to purchase 2.400 copies of the program for $1.50 each. Compute the incremental profit for loss) from accepting the special order under this scenario. 4. Suppose that MSI is operating at full capacity to accept the special order it would have to reduce production of the history program. Compute the special order price at which MSI would be indifferent between accepting or rejecting the special order Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the incremental profit (or loss) from accepting the special order Profit for Lons) no effect by Required 2 > 5 Parto Required information The following information applies to the questions displayed below! Morning Sky, Inc. (MSI), manufactures and sells computer games. The company has several product lines based on the age range of the target market. MSi sells both individual games as well as packaged sets. All games are in CD format and some utilize accessories such as steering wheels, electronic tablets, and hand controls. To date, MSI has developed and manufactured all the CDs itself as well as the accessories and packaging for all of its products, The gaming market has traditionally been targeted at teenagers and young adults, however, the increasing affordability of computers and the incorporation of computer activities into junior high and elementary school curriculums has led to a Dignificant increase in sales to younger children. MSI has always included games for younger children but now wants to expand its business to capitalize on changes in the Industry. The company currently has excess capacity and is Investigating several possible ways to improve profitability 1 Do Book HA 2 MSi has been approached by a fourth-grade teacher from Portland about the possibility of creating a specially designed game that would be customized for her classroom and environment. The teacher would like an educational game to correspond to her classroom coverage of the history of the Pacific Northwest, and the state of Oregon in particular MSI has not sold its products directly to teachers or school systems in the past, but its Marketing Department identified that possibility during a recent meeting The teacher has offered to buy 2.400 copies of the CD at a price of $5.00 each. MSI could easily modify one of its existing educational programs about US history to accommodate the request. The modifications would cost approximately $390. A summary of the Information related to production of MSI's current history program follows: Reference 5.1.14 0.30 2.23 Direct materials Direct labor Variable naturing overhead Tied wataturing overhead Total cost per unit sale price per unit 35.65 $12.00 Required: 1. Compute the incremental profit (or loss) from accepting the special order 2. Should MSI accept the special order? 3. Suppose that the special order had been to purchase 2,400 copies of the program for $1.50 each. Compute the incremental profit for loss) from accepting the special order under this scenario 4. Suppose that MSI is operating at full capacity. To accept the special order, it would have to reduce production of the history program Compute the special order price at which MSI would be indifferent between accepting or rejecting the special order. Complete this question by entering your answers in the tabs below Required Required 2 Required Required Suppose that the special order had been to purchase 2.400 copies of the program for $1.50 each. Opute the incremental profit (or loss) from accepting the special order under this scenario Horos 07 Po Required information The following information applies to the questions displayed below! Moming Sky, Inc. (MSI), manufactures and sellis computer games. The company has several productes based on the agerenge of the target market MSI ses both individual games as well as packaged sets. All games are in CD format, and some time accessories such as steering wheels, electronic tablets, and hand controls. To date, MSI has developed and manufactured all the CDs itself as well as the accessories and packaging for all of its products The garning market has traditionally been targeted at teenagers and young adults; however, the increasing affordability of computers and the incorporation of computer activities into junior high and elementary school curriculums has led to a significant increase in sales to younger children MSi has always included games for younger children but now wants to expand its business to capitale on changes in the industry. The company currently has excess capacity and is Investigating several possible ways to improve profitability 1 Mas been approached by a fourth grade teacher from Portland about the possibility of creating a specially designed game that would be customized for her classroom and environment. The teacher would like an educational game to correspond to her classroom coverage of the story of the Pacific Northwest, and the state of Oregon in particulat MSi has not sold its products directly to teachers or school systems in the past, but its Marketing Department identified that possibility during a recent meeting The teacher has offered to buy 2.400 copies of the CD at a price of $5.00 each, MSI could easily modify one of its existing educational programs about US history to accommodate the request. The modification would cost approximately $390. A summary of the Information related to production of MSIS. Current history program follows fo 33.14 0.16 2.33 DELALU Dar varale overhead Teatroverhead Total cost per el peperont Required 1. Compute the incremental profit for oss from accepting the special order 2. Should I accept the special order? 3. Suppose that the special order had been to purchase 2400 copies of the program for $150 each. Compute the incremental profit for oss from accepting the special order under the scenario 4. Suppose that is operating still capacity. To accept the special order it would have to reduce production of the history program. Comoute the special order price at which I would be indifferent between accepong or rejecting the special ordet. Complete the question by entering vour answers in the tabs below Reed Here SOM NA MST is operating at all capacity to accept the special order it would have to reduce production of the history program computer special order once a which MSI would be indifferent between accepting or rejecting the social order (that your domar Order Price