changing this product to a much more decorative model by adding a sik-screened design and embellishments. A summary of the expected costs and revenues for Mohave's two options follows: Decorated 10,000 units $ 8.0 10,000 units $19. $5.50 $ 2.50 1.50 Estimated demand Estimated sales price Estimated manufacturing cost per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit manufacturing cost Additional development cost 2.00 2.50 2.00 $14.00 $10.00 $ Required: 1. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations 2. Should Mohave add decorations to the Rosa umbrella? 3-0. Suppose that the higher price of the decorated umbrella is expected to reduce estimated demand for this product to 8,000 units Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations 3-b. Should Mohave add decorations to the Rosa umbrella? Complete this question by entering your answers in the tabs below. Reg Reg2 Reg Rec 30 Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations Decorated Roso Umbrella Incremental Sales Revenue Variable Costs Contribution Margin Additional Development Costs Diferential Profit (Loss) changing this product to a much more decorative model by adding a silk-screened design and embellishments. A summary of the expected costs and revenues for Mohave's two options follows: Rosa Umbrella 10,000 units $ 8.00 Decorated Umbrella 10,000 units $ 19.00 Estimated demand Estimated sales price Estimated manufacturing cost per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit manufacturing cost Additional development cost $ 2.50 1.50 0.50 2.60 $6.50 $ 5.50 4.00 2.50 2.00 $14.00 $10,000 Required: 1. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations 2. Should Mohave add decorations to the Rosa umbrella? 3-0. Suppose that the higher price of the decorated umbrella is expected to reduce estimated demand for this product to 8,000 units. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations 3.b. Should Mohave add decorations to the Rosa umbrella? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Reg 38 Should Mohave add decorations to the Rosa umbrella? Yes ONO changing this product to a much more decorative model by adding a silk-screened design and embellishments. A summary of the expected costs and revenues for Mohave's two options follows: Rosa Umbrella 10,000 units $ 8.00 Decorated Umbrella 10,000 units $ 19.00 Estimated demand Estimated sales price Estimated manufacturing cost per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit manufacturing cost Additional development cost $ 2.50 1.50 0.50 2.00 $ 6.50 $ 5.50 4.00 2.50 2.00 $ 14.00 $10,000 Required: 1. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations 2. Should Mohave add decorations to the Rosa umbrella? 3.a. Suppose that the higher price of the decorated umbrella is expected to reduce estimated demand for this product to 8,000 units. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations 3-b. Should Mohave add decorations to the Rosa umbrella? Complete this question by entering your answers in the tabs below. Req1 Reg 2 Reg 3A Reg 30 Suppose that the higher price of the decorated umbrella is expected to reduce estimated demand for this product to 8,000 units. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations. Rosa Umbrella Decorated Umbrella Incremental Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) changing this product to a much more decorative model by adding a silk-screened design and embellishments. A summary of the expected costs and revenues for Mohave's two options follows: Rosa Umbrella 10,000 units $ 8.00 Decorated Umbrella 10,000 units $ 19.00 Estimated demand Estimated sales price Estimated manufacturing cost per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit manufacturing cost Additional development cost $ 2.50 1.50 @.se 2.80 $ 5.50 4.00 2.50 2.00 $ 14.00 $10,000 Required: 1. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations 2. Should Mohave add decorations to the Rosa umbrella? 3-a. Suppose that the higher price of the decorated umbrella is expected to reduce estimated demand for this product to 8,000 units Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations. 3.b. Should Mohave add decorations to the Rosa umbrella? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 38 Should Mohave add decorations to the Rosa umbrella? 8 Yes No
