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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. MS 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 has offered to buy 1600 copies of the CD at a price of $5.00 each. MSI could easily modify one of its existing educational programs about US history to accommodate the request. The modifications would cost approximately $460. A summary of the Information related to production of MSI's current history program follow Direct materials Direction Variable manufacturing overhead Fixed tacturing overhead Total cost per unit Sales price per unit 5 1.16 0.49 2.07 190 $14.00 Required: 1. Compute the incremental profit or loss) from accepting the special order. 3 Supporto that the special order had been to purchase 1,600 copies of the program for $1.50 each dampute the incremental proft for loss from accepting the special order under this scenario 4. Suppose that MSIis operating at fut capacity. To accept the special order. It would have to reduce production of the history program. Compute the special order price at which I would be indifferent between accepting or rejecting the special order Complete this question by entering your answers in the tabs below. RA Ruud 2 Red RA Compute the incremental profit (or los) from accepting the specal ordes LON increases by 3 1598 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Should MSI accept the special order? Should MSI accept the special order? Yes 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 1,600 copies of the program for $1.50 each. Compute the incremental profit (or loss) from accepting the special order under this scenario. Profit (or Loss) decreases by (3.862) 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

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