The Rosa model o M have o cu ent y manufactured asa very costs and revenues for Mohave's two options follows ain umbrela ith no decoration. The company is consid nng changing his product o ? much more decorative model by adding a silk-screened design an embellishments A summary o the c Rosa Umbrella Umbrella Est mated demand Estmated sales price Est mated manufacturing cost per unit 26,000 units 26,000 units 28.00 S 38.00 Direct materia's Direct labor Variable manufacturing overhead Fixed manufacturing overhead S 18.50 4.50 3.50 6.00 S 20.50 r.00 5.50 6.00 Unit manufacturing coet Additional deve opment coet $12,000 Required: 1. Determine the increase or decrease in profit if Mohave seils the Rosa Umbrella with the additional decorations. Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) 2. Should Mohave add decorations so the Rosa umbrela? Yes ?No 3-a. Suppose that the higher price of the decorated umbrella is expected to reduce estimated demand for this produc to 24,000 units. Determine the increase or decrease in profit if Mchave sells the Rosa Umbrella with the acditional decorations. Sales Revenue Variable Costs Contibution Margin Additional Development Costs Differential Profit (Loss) 3-b. Should Mohave add decorations to the Rosa umbrelia? No Yes