Question
Balton Garage Doors manufactures a premium garage door.Current price and cost data associated with this garage door are provided at left.Acme's total annual fixed costs
Balton Garage Doors manufactures a premium garage door.Current price and cost data associated with this garage door are provided at left.Acme's total annual fixed costs are $426,000.
Balton is currently evaluating whether to develop a comprehensive software control system for its manufacturing operations that would significantly reduce scrap and waste generated during the manufacturing process.If Balton were to implement this software control system in its manufacturing operations, total annual fixed costs would increase by $126,000 while average variable manufacturing costs would decrease by $210.
a.What is Balton current breakeven point in units and dollars?Show your work.
b. Balton expects to sell 300 premium garage doors next year.If it does not implement the software control system, what is the expected operating profit?Show your work.
c.If the software control system is implemented next year what would Balton new breakeven pointbe in units and dollars?Show your work.
d. Balton expects to sell 300 premium garage doors next year.If it does implement the software control system, what is the expected operating profit?Show your work.
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