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: Rosa Decorated Umbrella Umbrella Estimated demand Estimated sales price Estimated manufacturing cost per u 20,000 units 20,000 units $ 22.00 32.00 nit $12.50 3.50 2.50 4.00 $ 14.50 6.00 4.50 4.00 $ 22.50S 29.00 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit manufacturing cost Additional development cost Required 1. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations Rosa Umbrella Incremental lla Umbrella Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) 2. Should Mohave add decorations to the Rosa umbrella? O Yes O No 3-a. Suppose that the higher price of the decorated umbrella is expected to reduce estimated demand for this product to 18, un with the additional decorations. Determine crease or decrease in not f Oha e sells e Rosa umbrella e RosaDecorated Umbrella Umbrella ncrem Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) 3-b. Should Mohave add decorations to the Rosa umbrella? O No Yes