55 ints eBook Print References PA7-4 (Algo) Analyzing Sell-or-Process-Further Decision (LO 7-2, 7-6] 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 Decorated Umbrella 17,000 units $ 26.00 17,000 units $ 15.00 $ 9.50 $11.50 2.50 5.00 1.50 3.50 3.00 3.00 $ 16.50 $23.00 $11,000 Estimated demand Estinated sales price Estimated manufacturing cost per unit Direct naterials 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. 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 15,000 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.