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. he 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 identitied that possibility during a recent meeting

The teacher has offered to buy 1,000 copies of the CD at a price of $5 each. MSI could easily modify one of its existing educational programs about U.S. history to accommodate the request. The modifications would cost approximately $500. A summary of the information related to production of MS's current history program follows:

Req. 1: Compute the incremental profit (or loss) from accepting the special order.

Req. 2: Should MSI accept the special order?

Req. 3: Suppose that the special order had been to purchase 1,000 copies of the program for $4.50 each. Compute the incremental profit (or loss) from accepting the special order under this scenario.

Req. 4: Suppose that MI 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 MS would be indifferent between accepting or rejecting the special order.

E7-6 (Static) Analyzing Special-Order Decision [LO 7.2, 7.3] MSI has been approached by a fourth-grade teacher from Portand about the possibility of creating a-speciaily designed game that would be customized for her classroom and environment. The teacher would like an educational game to correspond to her classrocm coverage of the history 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 possibiity during a recent meeting The teacher has offered to buy 1.000 copies of the CD at a price of $5 each. MSI could easily modify one of its existing educational programs about U.S history to accommodate the request. The modifications would cost approximately $500 A summary of the information related to production of MSI's current history program follows. Complete this question by entering your answers in the tabs below. Compute the incremental profit (or loss) from accepting the special order. Should MSI accept the special order? Suppose that the special order had been to purchase 1,000 copies of the program for $4,50 each. Compute the incremental profit (or loss) from accepting the special order under this scenario. 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. (Round your answer to 2 decimal places.)