He 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 estimated demand 15,000 units 15,000 units estimated sales price $ 13.00 $ 24.00 estimated manufacturing cost per unit direct materials $ 7.50 $ 9.50 direct labor 2.50 5.00 variable manufacturing overhead 1.50 3.50 fixed manufacturing overhead 3.00 3.00 unit manufacturing cost $ 14.50 $ 21.00 additional development cost $ 15,000 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 13,000 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?

An instance where sellers should work to keep relationships with customers is when they instance where selllars should work to keep relationships with customers is when they feel that the product

Required information problem 15-1a production costs computed and recorded; reports prepared lo c2, p1, p2, p3, p4 [the following information applies to the questions displayed below. marcelino co.'s march 31 inventory of raw materials is $84,000. raw materials purchases in april are $540,000, and factory payroll cost in april is $364,000. overhead costs incurred in april are: indirect materials, $59,000; indirect labor, $26,000; factory rent, $38,000; factory utilities, $19,000; and factory equipment depreciation, $58,000. the predetermined overhead rate is 50% of direct labor cost. job 306 is sold for $670,000 cash in april. costs of the three jobs worked on in april follow. job 306 job 307 job 308 balances on march 31 direct materials $30,000 $36,000 direct labor 25,000 14,000 applied overhead 12,500 7,000 costs during april direct materials 133,000 210,000 $100,000 direct labor 105,000 150,000 101,000 applied overhead ? ? ? status on april 30 finished (sold) finished in process (unsold) required: 1. determine the total of each production cost incurred for april (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from march 31). a-materials purchases (on credit). b-direct materials used in production. c-direct labor paid and assigned to work in process inventory. d-indirect labor paid and assigned to factory overhead. e-overhead costs applied to work in process inventory. f-actual overhead costs incurred, including indirect materials. (factory rent and utilities are paid in cash.) g-transfer of jobs 306 and 307 to finished goods inventory. h-cost of goods sold for job 306. i-revenue from the sale of job 306. j-assignment of any underapplied or overapplied overhead to the cost of goods sold account. (the amount is not material.) 2. prepare journal entries for the month of april to record the above transactions. 3. prepare a schedule of cost of goods manufactured. 4.1 compute gross profit for april. 4.2 show how to present the inventories on the april 30 balance sheet.

Paid-in-capital in excess of par represents the amount of proceeds a. from the original sale of common stock b. in excess of the par value from the original sale of common stock c. at the current market value of the common stock d. at the curent book value of the common stock