The teacher has offered to buy 1000 copies of the CD at a price of $5 each. The modifications would cost approximately $500.

Chapter7 Homework - Connct Chapter Honework The teacher has offered to buy 1,000 copies of the CD at a price of $5 each. MSI could easity modi production of MSI's current history program follows S 1.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 0.60 2.25 2.00 Total cost per unit Sales price per unit $12.00 Required: 1. Compute the incremental profit (or loss) from accepting the special order Profit (or Loss) Increases by 2. Should MSI accept the special order? O Yes O No 3. Suppose that the special order had been to purchase 1,000 copies of the program for $4.50 eac ofit (or Loss) Decreases by 4. Suppose that MSl is operating at full copacity. To accept the special order, it would have to reduc places.) Special Order Price