Table for Req 1 and 3A:

The Rosa model of Mohave Corp. is currently manufactured as a very plain umbrella with no decoration. The company is considering changing this product to a much more decorative model by adding a silk-screened design and embellishments. A summary of the expected costs and revenues for Mohave's two options follows: Required: 1. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations. 2. Should Mohave add decorations to the Rosa umbrella? 3-a. Suppose that the higher price of the decorated umbrella is expected to reduce estimated demand for this product to 12,000 units. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations. 3-b. Should Mohave add decorations to the Rosa umbrella? \begin{tabular}{l|c|c|} & RosaUmbrella & DecoratedUmbrella \\ \hline Sales Revenue & & \\ \hline Variable Costs & & \\ \hline Contribution Margin & & \\ \hline Additional Development Costs & & \\ \hline Differential Profit (Loss) & & \\ \hline \hline \end{tabular} The Rosa model of Mohave Corp. is currently manufactured as a very plain umbrella with no decoration. The company is considering changing this product to a much more decorative model by adding a silk-screened design and embellishments. A summary of the expected costs and revenues for Mohave's two options follows: Required: 1. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations. 2. Should Mohave add decorations to the Rosa umbrella? 3-a. Suppose that the higher price of the decorated umbrella is expected to reduce estimated demand for this product to 12,000 units. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations. 3-b. Should Mohave add decorations to the Rosa umbrella? \begin{tabular}{l|c|c|} & RosaUmbrella & DecoratedUmbrella \\ \hline Sales Revenue & & \\ \hline Variable Costs & & \\ \hline Contribution Margin & & \\ \hline Additional Development Costs & & \\ \hline Differential Profit (Loss) & & \\ \hline \hline \end{tabular}