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[The following information applles to the questions displayed below] Morning Sky, Incorporated (MSi), manufactures and selts computer garnes. The company has several product lines based

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[The following information applles to the questions displayed below] Morning Sky, Incorporated (MSi), manufactures and selts computer garnes. 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. All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets. and hand controls. fo date. MSi has developed and manufactured all the CDs itself as well as the accessories and packaging for all of its proctucts. The gaming market has traditionally been targeted at teenagers and young adults, however, the increasing affordability of computers and the incorporation of computer activities into junior high and elementary school cumculums has led to a significant increase in sales to younger childen. MSI has always included games for younger children but now wants to expand its business to capitaiize on changes in the industry. The company currenty has excess capacity and is investigating several possible ways to improve profitability MSt has been approached by a fourth-grade teacher from Portand 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 cortespond to her classroom. coverage of the history of the Pacific Northwest, ond the stote of Oregon in particutar MSI has not sold its products directly to teachers or school systems in the past. but its Marketing Department identified that possibity during a recent meeting. The teacher has offered to buy 1500 copies of the CD ot a price of $5.00 eoch. MSI could easify modify one of its existing educational programs obout US history to accommodate the request. The modicications would cost approximately $430. A summory of the information reloted to production of MSi s cunent history programi follows: Required: 1. Compute the increinental profit (ar iossi) from ascepting the special oideci 2. Should MSt accept the special order? 3. Suppose the speciatorcer had been to purchase 1,500 coples of the program for $1.50 each Compute the incremental profit (or loss) from accepting the special order under this scenario 4. Suppose MSi is operating at full capacity. 10 accept the speciot ordec, it would have to reduce production of the history program. Compute the special order pnce ot which MSi would be indifferent between accepting or rejecting the special order. Comolete this question bv enterina vour answers in the tabs below

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