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The teacher has offered to buy 1.500 copies of the CD at a price of $6.00 each. MSI could easily modify one of its existing
The teacher has offered to buy 1.500 copies of the CD at a price of $6.00 each. MSI could easily modify one of its existing educational programs about U.S. history to cument history program follows ac the request. The modifications would cost approximately $490. A summary of the information rellated to production of MSI's Direct manerials Direct labor Variable manufacturing overhead Fixed manufacturing overhead S 113 0.49 214 190 S 5,06 51200 Total cost per unin Salles price per unit Required 1. Compute the incremental profit (or loss) from accepting the special onder by 2. Should MSI accept the special onder? O Yes No Suppose that the special o der had been to p rchase 1.500 copies of the program for $3.50 each. Compute the incre ental profit or loss) from a program for accepting the special order nder this scen by 4. Suppose that MSI is operating at full capacity. To accept the special ondet, it would have to reduce production of the history program.Compute the special order price at which MSI would be indiferent between accepting or rejecting the speciall oeder. (Round your answer would be indifferent between reiecting the to 2 decimal places
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