John Smith, the general manager of Herb Software, must decide when to release the new The product can be shipped starting July 1, 2017 version of Herb's spreadsheet package, Easyspread 2.0. Development of Easyspread 2.0 is (Click the icon to view the relevant costs information.) complete; however, the diskettes, compact discs, and user manuals have not yet been produced The following information is available: (Click to view the information.) Read the requirements Requirement 1. On the basis of financial considerations alone, should Smith introduce Easyspread 2.0 on July 1, 2017, or wait until October 1, 2017 Show your calculations, clearly identifying relevant and irrelevant revenues and costs. Begin by determining whether each item is relevant or irrelevant for this decision. (Make a selection for each item.) Easyspread 1.0 Easyspread 2.0 Selling price Variable cost per unit of diskettes, compact discs, user manuals Development cost per unit Marketing and administrative cost per unit The major problem is that Herb has overstocked the previous version of its spreadsheet package, Easyspread 1.0. Smith knows that once Easyspread 2.0 is introduced, Herb will not be able to sell any more units of Easyspread 1.0. Rather than just throwing away the inventory of Easyspread 1.0. Smith is wondering if it might be better to continue to sell Easyspread 1.0 for the next three months and introduce Easyspread 2.0 on October 1, 2017, when the inventory of Easyspread 1.0 will be sold out 1. On the basis of financial considerations alone, should Smith introduce Easyspread 2.0 on July 1, 2017, or wait until October 1, 2017? Show your calculations, clearly identifying relevant and irrelevant revenues and costs. 2. What other factors might John Smith consider in making a decision? John Smith, the general manager of Herb Software, must decide when to release the new The product can be shipped starting July 1, 2017 version of Herb's spreadsheet package, Easyspread 2.0. Development of Easyspread 2.0 is (Click the icon to view the relevant costs information.) complete; however, the diskettes, compact discs, and user manuals have not yet been produced The following information is available: (Click to view the information.) Read the requirements Requirement 1. On the basis of financial considerations alone, should Smith introduce Easyspread 2.0 on July 1, 2017, or wait until October 1, 2017 Show your calculations, clearly identifying relevant and irrelevant revenues and costs. Begin by determining whether each item is relevant or irrelevant for this decision. (Make a selection for each item.) Easyspread 1.0 Easyspread 2.0 Selling price Variable cost per unit of diskettes, compact discs, user manuals Development cost per unit Marketing and administrative cost per unit The major problem is that Herb has overstocked the previous version of its spreadsheet package, Easyspread 1.0. Smith knows that once Easyspread 2.0 is introduced, Herb will not be able to sell any more units of Easyspread 1.0. Rather than just throwing away the inventory of Easyspread 1.0. Smith is wondering if it might be better to continue to sell Easyspread 1.0 for the next three months and introduce Easyspread 2.0 on October 1, 2017, when the inventory of Easyspread 1.0 will be sold out 1. On the basis of financial considerations alone, should Smith introduce Easyspread 2.0 on July 1, 2017, or wait until October 1, 2017? Show your calculations, clearly identifying relevant and irrelevant revenues and costs. 2. What other factors might John Smith consider in making a decision
