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MSI has been approached by a fourth-grade teacher from Portland about the possibility of creating a specially would be customized for her classroom and environment.
MSI has been approached by a fourth-grade teacher from Portland about the possibility of creating a specially would be customized for her classroom and environment. The teacher would like an educational game to corn coverage of the history of the Pacific Northwest, and the state of Oregon in particular. MSI has not sold its proc or school systems in the past, but its Marketing Department Identified that possibility during a recent meeting. The teacher has offered to buy 2,900 coples of the CD at a price of $5.00 each. MSI could easily modify one of programs about U.S. history to accommodate the request. The modifications would cost approximately $500. A information related to production of MSI's current history program follows: Required: 1. Compute the incremental profit (or loss) from accepting the special order 2. Should MSI accept the speclal order? 3. Suppose that the speclal order had been to purchase 2,900 coples of the program for $1.50 each. Compute the lr (or loss) from accepting the speclal order under this scenario. 4. Suppose that MSI is operating at full capacity. To accept the special order, it would have to reduce production or th program Compute the special order price at which MSI would be indifferent between accepting or rejecting the spec Complete this question by entering your answers in the tabs below. Compute the incremental profit (or loss) from accepting the special order
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