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 Al 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 torgeted at teenagers and young adults; however, the increasing affordabilty of computers and the incorporation of computer activities into Junior high and elementary school curriculums has led to a significant increase in solos to younger children. MSI has always included games for younger children but now wanita 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 MSi has been approached by a fourth-grade teacher from Portland about the possibility of creating a specially designed came 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 1300 copies of the CD to price of $6.00 each. MSI could easily modify one of its existing educational programs about us, history to accommodate the request. The modifications would cost approximately $400. A summary of the Information related to production of MSI current history program follows Det store 11.15 6:38 2.22 Variable contend edhe TOTAL pricepet Required information 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 1,300 copies of the program for $2.50 each. Compute the incremental profit (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 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 Book Him Complete this question by entering your answers in the tabs below. PE References Required 1 Required 2 Required 3 Required 4 Compute the incremental profit (or loss) from accepting the special order. Protetor Loss) increases by $ 2,500 Required 2 > Required information 4 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 1,300 copies of the program for $2.50 each. Compute the incremental profit (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 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 eBook Hint Complete this question by entering your answers in the tabs below. Serences Required Required 1 Refred 2 Required Should MSI accept the special order? Should MSI accept the special order? res (Required 1 Required 3 > 1 of 4 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 1,300 copies of the program for $2.50 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 a Requireale Required 4 So that the special order had been to purchase 1,300 copies of the program for $2.50 each compute the incrementar profit or loss) from accepting the special order under this scenario by $ 2.0001
