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will uprate! edited pictures. when clicked on will be more clear. Required Information The following information applies to the questions displayed below) Morning Sky Inc

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Required Information The following information applies to the questions displayed below) Morning Sky Inc (MS), manufactures and sells computer games. The company has several product ines based on the age range of the target market. Mi sells both individual games as well as packaged sets. All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets, and hand controlsTo date, MS has developed and manufactured all the CDs itself as well as the accessories and packaging for all of its products The gaming market has traditionally been targeted at teenagers and young adults, however, the increasing affordability of computers and the incorporation of computer activities into junior high and elementary school curriculums has led to a significant increase in sales to younger children. Mst has always included games for younger children but now wants to expand its business to capitalize on changes in the industry The company currently has excess capacity and 16 Investigating several possible ways to improve profitability MSI has been approached by a fourth-grade teacher from Portland about the possibility of creating a specially designed game that would be customized for her classroom 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 identified that possibility during a recent meeting The teacher nas offered to buy 1,500 copies of the CD at a pnce of 55.00 each. MSI could easily modify one of its existing educational programs about U.S. history to accommodate the request. The modifications would cost approximately $400. A summary of the information related to production of MSI's current history program follows: 31.12 2.1 2.24 Direct terlalu Direct labo variable facturing overhead I wanufacturing overhead Total com per shit Sales critter $12 Required: 1. Compute the incremental profit (or loss) from accepting the special order 2. Should MSI accept the special order? 3. Suppose that the special order had been to purchase 1,500 copies of the program for $1.50 each. Compute the incremental profit for loss) from accepting the special order under this scenario 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 Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 Required 4 Compute the incremental profit (or loss) from accepting the special order. Profit for losa) by Required 2 > Required: 1. Compute the incremental profit for loss from accepting the special ordet 2. Should MSI accept the special order? 3. Suppose that the special order had been to purchase 1.500 copies of the program for $150 each Compute the incremental profit for loss from accepting the special order under this scenario 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 Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required Should MSI accept the special order? Should MSi secept the special order? Required: 1. Compute the incremental profit (or loss) from accepting the special order. 2. Should MSI accept the special order? 3. Suppose that the special order had been to purchase 1,500 copies of the program for $1.50 each. Compute the incremental profit (or loss) from accepting the special order under this scenario. 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 ordet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Suppose that the special order had been to purchase 1,500 copies of the program for $1.50 each. Compute the incremental profit for loss) from accepting the special order under this scenario. Profit (or Less) by Required: 1. Compute the incremental profit or loss) from accepting the special order 2. Should MSI accept the special order? 3. Suppose that the special order had been to purchase 1,500 copies of the program for $1.50 each compute the incremental profit (or loss) from accepting the special order under this scenario. 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 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) Special Order Price Part 2 of 3 1 point MSI has determined that it could eliminate all variable costs if the control modules were produced externally, but none of the bed overhead is avoidable. At this time, MSI has no specific use in mind for the space that is currently dedicated to the control module production Required: 1. Compute the difference in cost between making and buying the control module. 2. Should MSI buy the modules from MLC or continue to make them? 3.o. Suppose that the MSI space currently used for the modules could be unuized by a new product line that would generate $41000 in annual profit. Recompute the difference in cost between maling and buying under this scenario 3-b. Does this change your recommendation to MSI? Boch * Him Complete this question by entering your answers in the tabs below. Print Reg! Reg 2 Reg 3A Req 30 Should MSI buy the modules from NLC or continue to make them? References Should Ms. buy the modules MLC or ce to make ho MSI is considering outsourcing the production of the handheld control module used with some of its products. The company has received a bid from Monte Legend Co (MLC) to produce 25,000 units of the module per year for $22.00 each. The following Information pertains to MSi's production of the control modules 513 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Yotal cost per unit 2 529 MSI has determined that it could eliminate all variable costs of the control modules were produced externally, but none of the fixed overhead is avoidable. At this time, MSI has no specific use in mind for the space that is currently dedicated to the control module production

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