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Mohave Corp makes several varieties of beach umbrellas and accessories. It has been approached by a company caled Lost Mine Industries about producing a special

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Mohave Corp makes several varieties of beach umbrellas and accessories. It has been approached by a company caled Lost Mine Industries about producing a special order for a custom umbrella called the Ultimate Shado (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 2.100 of the US umbrellas at a price of $17 each. Mohave currently has the excess capacity necessary to accept the offer. The following Information is related to the production of the US umbrella Maarial Direct morale Director Variable mandacuring overhead Fixed manufacturing overhead Total cos Regulation $ 8.00 4.00 4.00 250 310.50 52500 Required: 1. Compute the incremental profit or loss from accepting the special ordet Protor WarBook AS bo 90 F ET : 1 7 $ 4 % 5 & 7 .00 9 6 2 O 3 W Y R 0 E Q U T G H F D J K A P S > ? c V B M . 2. Should Mohave accept the special order? Yes No ACC 3. Suppose that the special order had been to purchase 2.600 umbrellas for $15.00 each. Recompute the incremental profit for loss from accepting the special order under the scenario TMT Proft (or los by SOMT 50 More 4. Assume that Mohave is operating at full capacity Calculate the special order price per unit of which have would be indifferent between accepting or rejecting the spec ordet Seculo MacBook Ali 00 FB re 4

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