Seved Help Sav mework Chapter 7 2 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 Umbrella 19,000 units $ 17.00 Decorated Umbrella 19,000 units $28.00 nts Estimated demand Estimated sales price Estimated manufacturing cost per unit Direct materiale Direct labor Variable nanufacturing overhead Fixed manufacturing overhead Unit manufacturing cost Additional developnent cont 5. 11.50 2.50 1.50 4.00 $19.50 5 13.50 5.00 3.50 4.00 5.26.00 $13,000 book 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 17,000 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 Reg 2 Reg 3A Reg 38 Determine the increase or decrease in profit ir Mohave sets the Rosa Umbrella with the additional decorations. Rosa Decorated Umbrella Umbrella Incremental Sales Revenue Variable Costs Contribution Margin Additional developnent cost $13,000 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 umbrello? 3-a. Suppose that the higher price of the decorated umbrella is expected to reduce estimated demand for this product to 17.000 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. Reg 1 Reg 2 Req 3A Reque Determine the increase or decrease in profit ir Mohave sells the Rosa Ombrella with the additional decorations. Rosa Decorated Umbrella Umbrella Incremental Sales Revenue Variable Costs Contribution Morgen Additional Development Costs Differential Profit (Loss) R Req2 > 2 Required: 1. Determine the increase or decrease in profitir 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 17,000 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? 10 points Complete this question by entering your answers in the tabs below. Reg 1 Reg2 ReQJA R38 Suppose that the higher price of the decorated umbrella is expected to riduce estimated demand for this product to 17,000 units, Determine the increase or decrease in pronti Mohave cells the Rosa Umbrella with the additional decorations Rosa Umbrella Decorated Umbrella incremental Sales Revenge Variable Costa Contribution Margin Additional Development Conta Differential Profit (Loss) ( Req2 Req38 >