Hello, I need help with this asap, this is managerial accounting. I do need helo...
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Hello, I need help with this asap, this is managerial accounting. I do need helo with these questions please.
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MetroPCS LTE 7:54 PM 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 Umbrela Umbrela Estimated demand Estimated sles price Estimated manvufacturing cost per uni 10,000 units 10,000 units 8.00 19.00 Direct materials Direct labor Veriable manufacturing overhead Fixed manufacturing overhead S 2.50 1.50 0.50 5.50 4.00 2.50 Unit manufacturing cost Additional develooment cost Required 1. 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) 2. Should Mohave add decorations to the Rosa umbrella? ONo 3-a. Suppose that the higher price of the decorated umbrella is expected to reduce estimated demand for this product to 8,000 units. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations. Sales Revenue Variable Costs Contrbution Margin Additional Development Costs Differential Profit (Loss) 3-b. Should Mohave add decorations to the Rosa umbrella? No References eBook & Resources Worksheet Difficulity: 2 Medium Analyze a sell-or decision PA7-4 Analyzing Sell Leaning Objective: 07-0 or-Process-Further Deine and identify relevant Decision LO 7-2, 7-6 costs and benefits
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