E7-5 Analyzing Special-Order Decision, E7-6 Analyzing Make-or-Buy Decision, E-7 Analyzing Keep-or-Drop Decision, E7-8 Analyzing Sell-or-Process-Further Decision (The folowing information applies to the questions displayed balow) Morning Sky, Inc. (MSI), manufectures and sells computer games. The company has several product lines based on the ege range of the target market. MSI sells both indlvidual games as well as peckaged sets. All games are in CD formet, and some utilize accessories such as steering wheels, electronic teblets, and hand controls. To date, MSI has developed and manufactured all the CDs itself as well as the accessories and peckaging 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 ncrease in sales to younger children. MSI 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 is investigating several possible ways to improve profitablity. References Section Break E7-5 Analyzing Special-Order Decision, E7-6 Analyzing Make-or-Buy Decision, E7-7 Analyzing Keep-or-Drop Decision, E7 8 Analyzing Sell-or Process-Further Decision
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