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Chec Umbrella 18,000 units $ 16.00 Umbrella 18,000 units $ 27.00 Estimated demand Estimated sales price Estimated manufacturing cost per unit Direct materials Direct labor

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Chec Umbrella 18,000 units $ 16.00 Umbrella 18,000 units $ 27.00 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 $ 10.50 2.50 1.50 4.00 $8.50 $ 12.50 5.00 3.50 4.00 $ 25.00 $12,000 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 16,000 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? 5-0. Snouiu Mondve duu uecordions Lo mne Rosd umbrelld! Comp! his question by entering your answers in the tabs below. Reg 1 Req 2 Req Req 3B Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorati Rosa Umbrella Decorated Umbrella Incremental Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) Req 2 > Com this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 3B Suppose that the higher price of the decorated umbrella is expected to reduce estimated demand for the units. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additiona Rosa Umbrella Decorated Umbrella Incremental Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) Prev 4 of 5 Next >

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