Headphones Speakers Sales revenue $ 2,232,450 $ 2,127,900 Direct materials 725,000 925,000 Direct labor 490,000 250,000a-1. Calculate the markup for both headphones and speakers. a-2. Based on the CFO's new policy, which of the two products should be dropped? b. Regardless of your answer in requirement (a), the CFO decides at the beginning of year 2 to drop the speakers from the product line. The company cost analyst estimates that overhead without the speaker line will be $625,000. The revenue and costs for headphones are expected to be the same as last year. What is the estimated markup for headphones in year 2?

Answer rating: 100% (QA)

a1 To calculate the markup for both headphones and speakers we need to subtract the total cost di... View the full answer