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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
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 custom umbrella called the Ultimate Shade (US). The special-order umbrellas with the Lost Mine Company logo would be distributed to participants et an upcoming convention sponsored by Lost Mine. Lost Mine has offered to buy 2,200 of the US umbrellas at a price of $18 cach. Mohave currently has the excess capacity necessary to accept the offer. The following information is related to the production of the US umbrello: Direct materials Direct labor Variable manufacturing overhead Tixed manufacturing overhead Total coat Regular sales price $ 8.00 4.00 4.50 2.50 $19.00 $26.00 Required: 1. Compute the incremental profit (or loss from accepting the special order 2. Should Mohave accept the special order? 3. Suppose that the special order had been to purchase 2.700 umbrellas for $15.00 each. Recompute the incrementat profit (or loss from accepting the special order under this scenario Assume that Mohave is operating at full capacity. Calculate the special order price per unit at which Mohave would be indiferent between accepting or rejecting the special order Complete this question by entering your answers in the tabs below. Required 1 Hequired 2 Required Required 4 Compute the incremental profe (or loss) from accepting the special order. ty Required 2 > 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 custom umbrella called the Ultimate Shade (US). The special order umbrellas 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 2.200 of the US umbrellas at a price of $18 each. Mohave currently has the excess capacity necessary to accept the offer. The following information is related to the production of the US umbrella: Direct materials Direct labor Variable sarutacturing overhead Fixed manufacturing overhead Total cost Megular sales price $ 0.00 4.00 4.50 2.50 $19.00 $26.00 Required: 1. Compute the incremental profit (or loss) from accepting the special order. 2. Should Mohave accept the special order? 3. Suppose that the special order had been to purchase 2,700 umbrellas for $15.00 each. Recompute the incremental proft (or los 4. Anume thot 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. Complete this question by entering your answers in the tabe below. Required Required 1 Required 2 Required Should Mohave a compt the special order? Yes NO Required 3 > Seved 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 custom umbrella called the Ultimate Shade (US). The special-order umbrellas 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 2.200 of the US umbrellas at a price of $18 each. Mohave currently has the excess capacity necessary to accept the offer. The following information is related to the production of the US umbrella Direct materiale Direet Labor Variable manufacturing overhead Tixed manufacturing overhead Total cost Meguiar sales price $ 8.00 4.00 4.50 2.30 Required: 1. Compute the incremental profit for loss from accepting the special order. 2. Should Mohave accept the special order? 2. Suppote that the special order had been to purchase 2700 umbrellas for $15.00 each. Recompute the incremental pront (or lom) A Asume that Mohave in operating at full capacity Calculate the special-order price per unit at which Monove would be indifferent between accepting or rejecting the special order Complete this question by entering your answers in the tabs below. Required 1 Reguires a esta equired* Suppose that the special order had been to purchase 2,700 umbrellas for $15.00 each. Recompute the incremental pront for Joss) from accepting the special order under this scenario. by
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