Question: please i beg i need the answer asap plz Regular Company produces audio equipment, specifically headphones and speakers. A new CEO has just been hired

please i beg i need the answer asap plz  please i beg i need the answer asap plz Regular Company
produces audio equipment, specifically headphones and speakers. A new CEO has just
been hired and announces a new policy that if a product cannot

Regular Company produces audio equipment, specifically headphones and speakers. A new CEO has just been hired and announces a new policy that if a product cannot earn a markup of at least 25 percent, it will be dropped. The markup is computed as product gross profit divided by reported product cost. Manufacturing overhead for year 1 totaled $1,002,000. Overhead is allocated to products based on direct materials cost Data for year 1 show the following: Required: a-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 requrement (0), 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 $635,000. 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 ? Complete this question by entering your answers in the tabs below. 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 $635,000. 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 ? (Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).) Calculate the markup for both headphones and speakers. (Enter your answers as a percentage rounded to 1 decimal place (1.e1,32.1),) Complete this question by entering your answers in the tabs below. 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 $635,000. 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? (Enter your answer as a percentage rounded to 1 decimal place (1.e., 32.1).)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!