Pls also give guidance to the 3 parts remaining. Thank you
Mark Willis, the general manager of Abode, must decide when to release the new version of Abode's fitness watch, TS-12. Development of TS-12 is complete but the product has not yet been produced. The product can be shipped starting July 1, 2020 i (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 Willis introduce TS-12 on July 1, 2020, or wait until October 1, 20207 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.) TS-11 TS-12 i Data Table Selling price Variable cost per unit Development cost per unit Marketing and administrative cost per unit A More Info TS-11 TS-12 - $ 175 S 215 Selling price Variable cost per unit 24 26 Development cost per unit 80 120 Marketing and administrative cost per unit 29 39 133 185 Total cost per unit 42 $ 30 Operating income per unit Development cost per unit for each product equals the total costs of developing the watch divided by the anticipated unit sales over the life of the product. Marketing and administrative costs are fixed costs in 2020, incurred to support all marketing and administrative activities of Abode and are allocated to products on the basis of the budgeted revenues of each product. The preceding unit costs assume TS-12 will be introduced on October 1, 2020. The major problem is that Abode has overstocked the previous version of its fitness watch, TS-11. Willis knows that once TS-12 is introduced, Abode will not be able to sell any more units of TS-11. Rather than just throwing away the inventory of TS-11, Willis is wondering if it might be better to continue to sell TS-11 for the next 3 months and introduce TS-12 on October 1, 2020, when the inventory of TS-11 will be sold out. Print Done Print Done Choose from any drop-down list and then click Check Answer. ? 3 parts Clear All Check Answer remaining Mark Willis, the general manager of Abode, must decide when to release the new version of Abode's fitness watch, TS-12. Development of TS-12 is complete but the product has not yet been produced. The product can be shipped starting July 1, 2020 i (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 Willis introduce TS-12 on July 1, 2020, or wait until October 1, 20207 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.) TS-11 TS-12 i Data Table Selling price Variable cost per unit Development cost per unit Marketing and administrative cost per unit A More Info TS-11 TS-12 - $ 175 S 215 Selling price Variable cost per unit 24 26 Development cost per unit 80 120 Marketing and administrative cost per unit 29 39 133 185 Total cost per unit 42 $ 30 Operating income per unit Development cost per unit for each product equals the total costs of developing the watch divided by the anticipated unit sales over the life of the product. Marketing and administrative costs are fixed costs in 2020, incurred to support all marketing and administrative activities of Abode and are allocated to products on the basis of the budgeted revenues of each product. The preceding unit costs assume TS-12 will be introduced on October 1, 2020. The major problem is that Abode has overstocked the previous version of its fitness watch, TS-11. Willis knows that once TS-12 is introduced, Abode will not be able to sell any more units of TS-11. Rather than just throwing away the inventory of TS-11, Willis is wondering if it might be better to continue to sell TS-11 for the next 3 months and introduce TS-12 on October 1, 2020, when the inventory of TS-11 will be sold out. Print Done Print Done Choose from any drop-down list and then click Check Answer. ? 3 parts Clear All Check Answer remaining
