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 $3,200$ US umbrellas at a price of $$33$ each. Mohave currently has the excess capacity necessary $t$

accept the offer. The following information is related to the production of the US umbrella:

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 $3,700$ umbrellas for $$29\mathrm{.}00$ each. Recompute the incremental profit $($o

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.

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