mohave corp makes

PA7-1 Analyzing Special-Order Decision [LO 7-2,7-3] Mohave Corp. makes several varieties of beach umbrellas and accessories. It has been approached by a company called Lost Mine Industries about producing a special order for a oustom umbrella called the Utimate Shade (US). The special-order umbrelas with the Lost Mine Company logo would be distributed to participants at an upcoming convention sponsored by Lost Mine. Lost Mine has offered to buy 2,400 of the US umbrellas at a price of $20 each Mohave currently has the excess capacty necessary to accept the offer The following information is related to the production of the Us umbrella Drect materials Direct labor Variable manufacturing overhead s9.00 5,00 5.50 250 $22 00 $28.00 Fixed manufactunng overhead Total cost Regular sales price Required 1. Compute the incremental profit (or loss) from accepting the special order 1200 Proft (or Loss) Inoreases 2. Should Mohave accept the special order? O Yes ONo 3. Suppose that the special order had been to purchase 2,900 umbrellas for $1700 each. Recompute the incremental profit (or loss) from accepting the special order under this scenario. Proft (or Loss) by 4. Assume that Mohave is operating at full capacity. Calculate the special-order price per unit at which Mohave would be indifferent between accepting or rejecting the special order Special Order Price per Unit