Regular Company produces audio oquipment, 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 $960,000. Overthead is allocated to products based on direct materials cost. Data for year 1 show the following: Required: a-1. Calculate the profit margin for both headphones and speakers. a-2. Based on the CFO's new policy, which of the two products should be dropped? b. Regardiess of your answor in requirement (a), the CFO decides at the beginning of year 2 to drop the speakers from the product tine. The company cost analyst estmates that overhead without the speaker line will be $600,000. 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. Ceiculate the profe margin for both headphones and speakers. Note ever yoir answers as a percentage rounded to 1 decimal place ( Le, 3213 . 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 eam 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 $960,000. Overhead is allocated to products based on direct materials cost Data for year 1 show the following: Required: a-1. Calculate the profit margin for both hendphones 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 (o), the CFO decides at the beginning of year 2 to drop the speakers from the product line. The company cost analyst estimates that overheod without the speaket line will be $600,000. The revenue and costs for headphohes 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. Based on the CFo's new polley, which of the two products should be dropped? 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 $960,000. Overhead is allocated to products based on direct materiats cost. Data for year 1 show the following: Required: a-1. Calculate the profit margin for both headiphones 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 (o), 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 $600,000. The revenue and costs for headphones are expected to be the same as last yeec. What is the estimated markup for beadphones in year 2 ? Complete this question by entering your answers in the tabs below. Regardiess of your answer in requirement (0), the CrO dededes at the beginning of year 2 to drop the speakers from the product line. The compony cost analyet estimates that overiead wathout the spoaker lne will be 3600,000 . The revenue and costs for headohones nee expected to be the same at last yeor. What is the estimated markup for headphanes in year 27
