The teacher has offered to buy $1,600$ copies of the CD at a price of $$5\mathrm{.}00$ each. MSI could easily modify one of its existing educational

programs about U$.$S$.$ history to accommodate the request. The modifications would cost approximately $$430.$ A summary of the

information related to production of MSI's current history program follows:

Required:

Compute the incremental profit $($or loss$)$ from accepting the special order.

Should MSI accept the special order?

Suppose the special order had been to purchase $1,600$ copies of the program for $$1\mathrm{.}50$ each. Compute the incremental profit $($or

loss$)$ from accepting the special order under this scenario.

Suppose 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.