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 26,000 units 26,000 units S 28.00 Estimated sales price 38.00 Estimated manufacturing cost per unit 20.50 18.50 Direct materials Direct labor 7.00 4.50 3.500 Variable manufacturing overhead 5.50 Fixed manufacturing overhead 6.00 6.00 32.50 39.00 Unit manufacturing cost Additional development cost $12,000 Required: 1. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations. Rosa Decorated Incremental Umbrella Umbrella Sales Revenue Variable costs Contribution Margin Additional Development Costs Differential Profit (Loss)