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The Rosa model of Mohave Corporation is currently manufactured as a very plain umbrella with no decoration. The company is considering changing this product to
The Rosa model of Mohave Corporation 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 silkscreened design and embellishments. A summary of the expected costs and revenues for Mohaves two options follows: Rosa Umbrella Decorated Umbrella Estimated demand units units Estimated sales price $ $ Estimated manufacturing cost per unit Direct materials $ $ Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit manufacturing cost $ $ Additional development cost $ Required: Determine the increase or
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