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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: Decorated Hosa Librella 20,000 units $. 22.00 Umbrella 28,000 units $32.00 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 $12.50 3.50 2.se 4.00 $22.50 $14.50 6.00 4.50 4.09 $29.00 $10,000 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 18.000 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 Reg 2 Req3A Reg 38 Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations. Rosa Umbrella Decorated Umbrella Incremental Sales Revenue Variable costs Contribution Margin Additional Development Costs Differential Profit (Loss) Req Req2 > Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req31 Reg 38 Should Mohave add decorations to the Rosa umbrella? Yes ONO Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Regja Req 38 Suppose that the higher price of the decorated umbrella is expected to reduce estimated demand for this product to 18,000 units. Determine the increase or decrease in prontif Mohave sells the Rosa Umbrella with the additional decorations Rosa Decorated Umbrella Umbrella Incremental Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) Complete this question by entering your answers in the tabs below. Red B Regt Reg2 RegJA Should Mohave add decorations to the Rosa umbrella? Ores ONO

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