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! Required information [The following information applies to the questions displayed below.) Kent, Inc. (KI) sells computer video games, and plans on expanding the business.
! Required information [The following information applies to the questions displayed below.) Kent, Inc. (KI) sells computer video games, and plans on expanding the business. The company currently has excess capacity. A customer requesting special feature included in the computer video game has offered to purchase 1,500 copies of the game at a price of $5.00 each. KI will spend approximately $460 to include the special feather. Kl's current cost of the computer video game is as follows: DM DL Variable MOH Fixed MOH Total cost per unit Sales price per unit $ 1.07 0.41 2.08 1.90 $ 5.46 $12.00 Required: 1. Find the incremental profit (or loss) if the special order were accepted. 2. Should Kl accept the special order? 3. Now assume that the special order is to purchase 1,500 copies of the video game at the price of $1.50 each. Find the incremental profit (or loss) if the special order were accepted under this scenario. ! Required information [The following information applies to the questions displayed below.) Kent, Inc. (KI) sells computer video games, and plans on expanding the business. The company currently has excess capacity. A customer requesting special feature included in the computer video game has offered to purchase 1,500 copies of the game at a price of $5.00 each. KI will spend approximately $460 to include the special feather. Kl's current cost of the computer video game is as follows: DM DL Variable MOH Fixed MOH Total cost per unit Sales price per unit $ 1.07 0.41 2.08 1.90 $ 5.46 $12.00 Required: 1. Find the incremental profit (or loss) if the special order were accepted. 2. Should Kl accept the special order? 3. Now assume that the special order is to purchase 1,500 copies of the video game at the price of $1.50 each. Find the incremental profit (or loss) if the special order were accepted under this scenario
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