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The following information applies to the questions displayed below Morning Sky, Inc. (MS, manufactures and sells computer games. The company has several product lines based

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The following information applies to the questions displayed below Morning Sky, Inc. (MS, manufactures and sells computer games. The company has several product lines based on the age range of the target market. MSI sells both indvidual games as well as packaged sets. All games are in CD format and some ublize accessories such as steering wheels, electronic tablets, and hand controls To date. MS has developed and manufactured at the cos itseras wel as the accessories and packaging for all of its products The gaming market has traditionally been targeted at teenagers and young however, the increasing affordablity of computers and the incorporation of computer activites intjunior high and elementary school curriculums has led to significant increase in sales to younger children. MSiI has always included games for younger children but now wants 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

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