PA7-1 (Algo) Analyzing Special-Order Decision [LO 7-2, 7-3] 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 2,900 US umbrellas at a price of $27 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. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost Regular sales price Required: $ 12.00 6.00 8.00 2.50 $28.50 $ 35.00 1. Compute the incremental profit (or loss) from accepting the special order. 2. Should Mohave accept the special order? 3. Suppose the special order had been to purchase 3,400 umbrellas for $25.00 each. Recompute the incremental profit (or loss) from accepting the special order under this scenario. 4. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4