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Required information [The following information applies to the questions displayed below] Moming Sky, Incorporated (MSi), manufactures and setls computer games. The company has several product

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Required information [The following information applies to the questions displayed below] Moming Sky, Incorporated (MSi), manufactures and setls 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 pockaged sets, All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets, and hand controts. To date, MSi has: developed and manufactured all the CDs itself as well as the accessonies and pockaging for all of its peoducts. The gaming market has treditionally been targeted at teensgers and young adults; howevet, 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 saies to younger children, MSi has alwayst included games for youriger chicidren but now wants to expand ins business to copltalize on changes in the industry. The company currenth has excess capacity and is ievestigating several possible woys to improve profitability. WSi hos been approsched by a fourth-grade teacher from Portiand about the possibility of ereating a specially designed game that would be customized for her classrocm and environment. The teacher would like on educationat game to correspond to her classroom coverage of the history of the Pacific Ncrthwest, and the state of Oregon in pariculac. MSt has not sold its products ditectly to teachers or school systems in thit past, but its Marketing Department identified that pessibility during a recent meeting The 1eacher has offered to buy 2.000 copies of the CD at a price of $6.00 each. Msi could easily modify cre of its exising educational peograms abeut US. history to accommodate the requent. The modifications would cost appronimately $440. A summary of the aform stion relnted to production of MSi's currem history program folows: The teacher has offered to buy 2.000 copies of the CD at a price of $6.00 each. MSI could easily modify one of its existing educationar programs about U.S. history to accommodate the request. The modifications would cost approximately $440. A summary of the information related to production of MSr's current history program follows: Required: 1. Compute the incremental profit (or loss) from accepting the special order. 2. Should MSt accept the special order? 3. Suppose the special order had been to purchase 2.000 copies of the program for $2.50 each. Compute the incremental proft for lossi) from accepting the special order under this scenario. 4. Suppose MSt is operating at full capacity. To accept the special ordec, it would have to reduce production of the history program. Compute the special order price of which MSi would be indifferent between accepting or rejecting the special order. Complete this question by entering your answers in the tabs below. Compute the incemental srofit (or loss) from accepting the special order

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