MSi has been approached by a fourth$-$grade teacher from Portiand about the possbilty of creating a specially designed game that would be customized for her classroom and ewvironment. The teacher would like an educasonal game to corrypone ts her ctursroom covornge of the history of the Puelle Northeest, and the state of Oregon in perticular. MSi hos not sold its products directly to teachers or school systems in the past, but its Marketing Depertment identfied that possibility during a receent meeting.

The seacher has oftered to buy $1,200$ copies of the CD as a price of $$6\mathrm{.}00$ each. MSi could easly modily one of its existing educational programs about US$.$ history to accommodite the request. The modifications would cost approvimately $5440.$ A summary of the information relibted to production of MSr$\text{'}$s current history program follows:

$\backslash$table$[[$Birect materials,$51\mathrm{.}85],[$Oirect laber,$4\mathrm{.}47],[$Vorlaste manutacturing overhead,$2\mathrm{.}85],[$Fised marufacturing overhead,$1\mathrm{.}98],[$Tetal cest per unit,$83\mathrm{.}47],[$Solet price per unit,$512\mathrm{.}06]]$

Pequired:

Compule the incremental profit $($or loss$)$ from accepting the special order.

Should M$5$I accept the speciel order?

Suppobe the speclal order had been to purchave $1200$ copes of the program for $$2\mathrm{.}50$ each. Compube the incremental profe $($or loss$)$ from accepting the special order under this scenario.

Suppose MSI is operating of fill capacity. To accept the special ondes, it would have to reduce production of the history program. Compute the special order price at which MSi would be indifletemt between accepting or rejecting the special ondect