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The teacher has offered to buy 1,900 copies of the CD at a price of $7.00 each. MSI could easily modify one of its existing
The teacher has offered to buy 1,900 copies of the CD at a price of $7.00 each. MSI could easily modify one of its existing educational programs about U.S. history to accommodate the request. The modifications would cost Direct materials Direct labor ariable manufacturing overhead Fixed marnufacturing overhead $ 1.23 0.49 2.14 Total cost per unit Sales price per unit $1300 Required: 1. Compute the incremental profit (or loss) from accepting the special order r Loss) by 3. Suppose that the special order had been to purchase 1,900 copies of the program for $6.50 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 indifferent between accepting or rejecting the special order. (Round your answer to 2 decimal places.)
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