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: Decorated Umbrella Estimated demand Estimated sales price Estimated manufacturing cost per unit Direct materials Direct labor Fixed manufacturing overhead Variable manufacturing overhead Unit manufacturing cost Additional development cost Required: Rosa Umbrella 14,000 units $12.00 14,000 units $23.00 $ 6.50 $8.50 1.50 4.00 0.50 2.50 3.00 3.00 $11.50 $18.00 $14,000 1. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decoration. 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? 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 38 Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations. Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit Loss) Rosa Umbrella Decorated Incremental Umbrella Mout 3-a. Suppose that the higher price of the decorated umbrella is expected to reduce estimated demand for this product to 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 38 Ok nces Should Mohave add decorations to the Rose umbrella? Yes ONO 3-b. Should Mohave add decorations to the Rosa umbrella? Complete this question by entering your answers In the tabs below. Req 1 Req 2 Req 3A Req 38 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. Sales Revenue Varable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) Rosa Umbrella Decorated Umbrella Incremental > 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 38 Should Mohave add decorations to the Rosa umbrella? OY ON