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PA7-1 (Static) Analyzing Special-Order Decision [LO 7-2, 7-3] Mohave Corporation makes several varieties of beach umbrellas and accessories. It has been approached by o company

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PA7-1 (Static) Analyzing Special-Order Decision [LO 7-2, 7-3] Mohave Corporation makes several varieties of beach umbrellas and accessories. It has been approached by o company callec Lost Mine Industries about producing a special order for a custom umbrella called the Uitimate Shade (US) The special-order umbrellas with the Lost Mine Company logo would be distributed to participants at an upcoming convention sponsored by Los! Mine. Lost Mine offered to buy 1,500 US umbrellas at a price of $11 each Mohave currenty has the excess copacity necessary to accept the offer. The following information is related to the production of the US umbrelia: Required: 1. Compute the incremental profit (or loss) from accepting the special ordet: 2. Should Mohave accept the special order? 3. Suppose the special order had been to purchase 2,000 umbrellas for $900 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

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