only 4

Part 14 10 Dit 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 1,400 copies of the CD at a price of $5.00 each. MSI could easily modity one of its existing educational programs about U.S. history to accommodate the request. The modifications would cost approximately $350 A summary of the information related to production of MSI's current history program follows: Direct materials Direct labor Variable manufacturing overhead Fixed sanufacturing overhead Total cost per unit Sales price per unit $ 1.13 0.41 2.19 1.80 Required: 1. Compute the incremental proft (or loss) from accepting the special order 2. Should MSIC the special order? 3. Suppose the special order ad been to purchase 1400 copies of the program for $1.50 each. Compute the incromonto pront for loss) from accing the special order under this scenario 4. Suppose that 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 MSI has been approached by a fourth-grade teacher from Portland about the pos would be customized for her classroom and environment. The teacher would like coverage of the history of the Pacific Northwest, and the state of Oregon in partic or school systems in the past, but its Marketing Department identified that possit The teacher has offered to buy 1,400 copies of the CD at a price of $5.00 each. programs about U.S. history to accommodate the request. The modifications wou information related to production of MSI's current history program follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit Sales price per unit $ 1.13 0.41 2.19 1.80 $ 5.53 $13.00 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 1,400 copies of the prog (or loss) from accepting the special order under this scenario. 4. Suppose that MSI is operating at full capacity. To accept the special order, it wc program. Compute the special order price at which MSI would be indifferent bet