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The foowin worrnato aies to the questons cdisplayed below Maming Sky Inc. (MSI). manutactures and sells computer games The company has several product lines based

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The foowin worrnato aies to the questons cdisplayed below Maming Sky Inc. (MSI). manutactures and sells computer games The company has several product lines based on the age range af the target market MSl sells hoth inciviclual 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. To date, MSI has developed and manufactured all the CDs rtself as well as the accessories and packaging for all of Its products Te am ng market hws raditionell been arc eted a een gers ar d o ng adults. however, the increasing ord ablli y o computers and the rc orpora on o computer t vtes r to un or h and elemen ry school curriculums h led to a significant incrcasc in sales to younger children. MSI has always included games for younger children but now wants to expand its busincss to capitalize on changes in the industry. The company currently has excess capecity and is investigating several possible ways to improve profitability. Required intormation 070 points MS has been approached by a four rade teacher rom Portland about he possibility o creating a spec ally designed game at would be customized or her dassroom 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 Identiried that posslbillity during a recent meeting. The teacher has offered to buy 1,900 copies of the CD at a price of $5.00 each. MSI could easily modify one of its existing educational programs about U.S. history to accommodate the request. The approximately $350. A summary of the information related to production of MSI's current history program follows: s would cost Direct matenals Direct labor Variable manufacturing owerhead Fixed manufacturing overhead $ 1.11 0 5D 2.16 Total cost per uni price per unit Sales $13.00 Required: 1. Compute the incremental profit (or loss) from accepting the special order t (or Loss) by 2. Should MSI accept the special order? O Yes O No 3. Suppose that the speclal order had been to purchase 1,900 coples of the program for $4.50 each. Compute the incremental profit (or loss) from accepting the special order under this scenario. by 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 indifterent between accepting o rejecting the special order. (Round your answer to 2 decimal places.) l Order Pricc

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