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Please answer all requirements. Homework: Chapter 11 Homework Save Score: 0 of 20 pts 2 of 6 (0 complete) HW Score: 0%, 0 of 100
Please answer all requirements.
Homework: Chapter 11 Homework Save Score: 0 of 20 pts 2 of 6 (0 complete) HW Score: 0%, 0 of 100 pts P11-37 (similar to) :3 Question Help David Jacobs, the general manager of Duncan Software, must decide when to release the new version of Duncan's spreadsheet package, Easyspread 2.0. Development of Easyspread 2.0 is complete; however, the diskettes, compact discs, and user manuals have not yet been produced. The product can be shipped starting July 1, 2017 (Click the icon to view the relevant costs information.) The following information is available: (Click to view the information.) Read the requirements Requirement 1. On the basis of financial considerations alone, should Jacobs 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 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 - X More Info Data Table The major problem is that Duncan has overstocked the previous version of its spreadsheet package, Easyspread 1.0. Jacobs knows that once Easyspread 2.0 is introduced, Duncan will not be able to sell any more units of Easyspread 1.0. Rather than just throwing away the inventory of Easyspread 1.0, Jacobs 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. X Requirements Print Done Easyspread 1.0 Easyspread 2.0 $ 140 $ 185 Selling price Variable cost per unit of diskettes, compact discs, user manuals 22 42 Development cost per unit 75 95 27 37 Marketing and administrative cost per unit 124 174 Total cost per unit $ 16 $ 11 Operating income per unit Development cost per unit for each product equals the total costs of developing the software product divided by the anticipated unit sales over the life of the product Marketing and administrative costs are fixed costs in 2017, incurred to support all marketing and administrative activities of Duncan Software. Marketing and administrative costs are allocated to products on the basis of the budgeted revenues of each product. The preceding unit costs assume Easyspread 2.0 will be introduced on October 1, 2017 1. On the basis of financial considerations alone, should Jacobs 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 David Jacobs consider in making a decision? Print Done ch Print DoneStep by Step Solution
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