Mohave Corporation is considering eliminating a product from its Sond Trap line of beach umbrellas. This collection is aimed at people who spend time on the beach or have an outdoor potio near the beach. Two products, the indigo and Verde umbrellas, have. impressive sales. However, sales for the Azul modet hawe been dismal. Mohove's information related to the Sand Trap line is shown as follows. Mohave determined thot eliminating the Azul model would cause sales of the indigo and Verde models to increase by 10 percent and 15 percent, respectively. Variable costs for these two models would increase proportionately. Although the direct fixed costs could be eliminoted, the common fiond costs are unavoldibble. The common fored costs would be redistributed to the remaining two mroducts. Required: 1.a. Complete the table given below, assuming Mohave Corporasion drops the Azul line 1-b. Will Mohave's net operating income increase or decrease if the Azut model is eliminated? By how moch? 2. Should Mohave drop the Azul model? 3-a. Complete the table given below assuming that Moheve had no direct fixed overhnad in its production information and the entire \$51,000 of fixed cost was common foced cost. 3-b. Should Mohave drop the Azul model? 3-c. What is the increase or decrease in the net operating income of Mohave? Complete this question by entering ycher answers in the tabs below. Complete the tabie aven below, assuming Mohave Corporation drops the Arut ane. Required: 1.a. Complete the table given below, assuming Mohave Corporation drops the Azul line. 1.b. Wil Mohave's net operating income increase or decrease if the Azul model is eliminated? By how mach? 2. Should Mohave drop the Azul moder? 3-a. Complete the table given below assuming that Mohave had no disect fixed overhead in its production information and the entire $51,000 of fixed cost was common fixed cost. 3-b. Should Mohave drop the Azul model? 3-c. What is the increase or decrease in the net operating income of Mohave? Complete this question by entering your answers in the tabs below. Complete the table given below, assuming Mohave Corporation drops the Azul line. Note: Do net round intermediate ealculatiens. Round Common Fured Costs to the nearest whote dollar. Required: 1-a. Complete the table given below, assuming Mohave Corporation drops the Azul line. 1-b. Will Mohave's net operating income increase or decrease if the Azul model is eliminated? By how much? 2. Should Mohave drop the Azul model? 3-a. Complete the table given below assuming that Mohave had no direct fixed overhead in its production information and the entire $51,000 of fised cost was common flixed cost 3-b. Should Mohave drop the Azul model? 3-c. What is the increase or decrease in the net operating income of Mohave? Complete this question by entering your answers in the tabs below. Complete the table given below assuming that Mohave had no direct fixed overhead in its production informstion and the entire 551,000 of hred cost was common fixed cost
