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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

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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: ROS Umbrella 23,000 units 25.00 Decorated Umbrella 23,000 units $ 35.00 Estimated demand Estimated sales price Estimated manufacturing cost per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit manufacturing cost Additional development cost $15.50 3.50 2.50 5.00 $17.50 6.00 4.50 5.00 $ 33.00 $10,000 $26.50 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 21,000 units. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations. 3-6. Should Mohave add decorations to the Rosa umbrella? Complete this question by entering your answers in the tabs below. Reg 2 Reg 1 Req 3A Reg 38 Determine the increase or decrease in profit i Mohave sells the Rosa Umbrella with the additional decorations, Umbrella Incremental Decorated Rosa Umbrella Sales Revenue

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