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

Direct materials $ $13\mathrm{.}00$

Direct labor $7\mathrm{.}00$

Variable manufacturing overhead $9\mathrm{.}50$

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

Total cost $ $32\mathrm{.}00$

Regular sales price $ $41\mathrm{.}00$

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 $3,700$ umbrellas for $$29\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.