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[The following information applies to the questions displayed below] Morning Sky, Incorporated (MSi), manufactures and sells computer games. The company has several product lines based on the age range of the target market. MSI sells both individual games as well as packoged sets. All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets, and hand controis. To date, MSi has developed and manufactured all the COs itself as well as the occessories and packeging for all of its products. The gaming market has traditionally been targeted at teenagers and young adults; however, the increasing affordabality of computers and the incorporation of computef activities into junior high and elementary school curriculums has led to a significant increase 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 capocity and is investigating several possible ways to improve profitability. MSI has been approached by a fourth-grade teacher from Portiand about the possibility of creating a specially designed game thet would be customized for her classroom and ervironment. 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 has offered to buy 1,300 coples 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 $400. A summary of the information reloted to production of MSirs current history program follows: Required: 1. Compute the incremental profit (or loss) from accepting the special order 2. Should MSi accept the special orden? 3. Suppose the special order had been to purchase 1,300 coples of the program for $1.50 each Compute the incremental profit (or loss) from accepting the special order under this scenario. 4. Suppose 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. Compute the incremental profit (or loss) from accepting the special order

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