Mohave Corporation 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 offered to buy $2,200$ 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 $ $8\mathrm{.}00$

Direct labor $4\mathrm{.}00$

Variable manufacturing overhead $4\mathrm{.}50$

Fixed manufacturing overhead $2\mathrm{.}50$

Total cost $ $19\mathrm{.}00$

Regular sales price $ $26\mathrm{.}00$

Required:

Compute the incremental profit $($or loss$)$ from accepting the special order.

Should Mohave accept the special order?

Suppose the special order had been to purchase $2,700$ umbrellas for $$15\mathrm{.}00$ each. Recompute the incremental profit $($or loss$)$ from accepting the special order under this scenario.

Assume 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.