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Check my work 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 22,000 units $ 24.00 Decorated Umbrella 22,eee units $34.00 Estimated demand Estimated sales price Estimated manufacturing cost per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit manufacturing cost Additional development cost $ 14.50 3.50 2.5e 5.00 $ 25.50 $ 16.50 6.ee 4.50 5.60 $ 32.00 $10.000 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 umbrella? 3-a. Suppose that the higher price of the decorated umbrella is expected to reduce estimated demand for this product to 20,000 units. Determine the incerten Harrante in unfit if Mohave call the real Imhralia with the actional Marnatione 1. Determine the ncrease 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 20,000 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. Reg 2 Reg 3A Reg 38 Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations Rosa Decorated Umbrella Umbrella Incremental Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) 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 20,000 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. Req1 Reg 2 Req 3A Reg 38 Should Mohave add decorations to the Rosa umbrella? Yes NO 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 20,000 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. Req1 Req2 Req 3A Req 3B Suppose that the higher price of the decorated umbrella is expected to reduce estimated demand for this product to 20,000 units, 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) 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 20,000 um 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 Req3A Req. I. os Should Mohave add decorations to the Rosa umbrella? Yos ON