Broakovan cales in i Data Table C ts iun 1,400 tw Average selling price per premium garage door ..... $ Average variable manufacturing cost per door ...... $ Average variable selling cost per door... $ Total annual fixed costs $ 380 mpy $ 180 ---- . 294,000 arag Print Done More Info w Ire Kenmore Garage Doors has undertaken several sustainability projects over the past few years. Management 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 the company were to implement this software control system in its manufacturing operations, the use of the software control system would result in an increase of $98,000 in its annual fixed costs while the average variable manufacturing cost per door would drop by $140. ga Print Done tro Kenmore Garage Doors manufactures a premium garage door Currently, the price and cost data associated with the premium garage door are as follows m Click the icon to view the data) (Click the icon to view more information Read the regoirements Requirement 1. What is the company's current breakeven in units and in dollars? Begin by identifying the formula to compute the breakeven sales in units using the contribution margin approach Breakeven sales in units The breakeven point in units is units The brokoven point in dollars is Requirement 2. If the company expects to sell 440 premium garage doors in the upcoming year, and it does not develop the software control system what is its expected operating income from premium garage doors? Begin by identifying the formula to compute the operating income Operating income Requirement 2. It the company expects to set 440 premium garage doors in the upcoming year, and a does not develop the software control system, what is its expected operating income from premium garage doors? Begin by identityng the formula to compute the operating income Operating income it the company expects to sell 440 garage doors, and it does not develop the sottware cortiol system is expected operating income is Requirements. It the software control system were to be developed and implemented, what would be the company's new breakujen pont in unts and an dotars? The breakeven point in units units The braven pontinos Requirement 4. u the company expects to sell 440 premium garage doors in the upcoming year, and it develops the software control system, what is its expected operating income from premium garage doors? 27 it the company expects to sell 40 garage doors, and it develops the software control system is expected operating incomes Requirement 6. If the company expects to set 440 promium garage doors in the upcoming year, do you think the company should implement the software control system? Why or why not? What factors should the company consider? the company implement the software control system. At this level of sales implementing the software control system would result in a operating income. The company should also consider
