Please helpThanksSolution Answer 1 Easyspread 1 Easyspread 2

Please help.Thanks

Solution

Answer 1. Easyspread 1 Easyspread 2 Relevant Revenues                        165.00                       215.00 Relevant Costs: Manuals, disketts, compact discs                                 -                           38.00 Relevant Operating Income                        165.00                       177.00 Easyspread 2 should be introduced immediately, as its relevant opearting income is more than Easyspread 1. Other Cost are irrerelvant as they have already incurred and Fixed in Nature. Answer 2. Other factors to be considered: 1. Customer Satisfaction 2. Quality level or better quality of Easyspread 2 than Easyspread 1. 3. To become market leader by introducing first in the market. 4. Morals of the employees, developers will be high. 5. Customer trust on the Company will be more.