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Core:UUIPE 17-27A (similar to) Kerrigan Garage Doors manufactures a premium garage door. Currently, the price and cost data associated with the premium garage door are

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Core:UUIPE 17-27A (similar to) Kerrigan Garage Doors manufactures a premium garage door. Currently, the price and cost data associated with the premium garage door are as follows: (Click the icon to view the data.) (Click the icon to view more information.) Read the requirements 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 Choose from any drop-down list and then click Check Answer Clear All e contribution margin approach. * Data Table ... Average selling price per premium garage door..... Average variable manufacturing cost per door Average variable selling cost per door Total annual fixed costs 2,200 500 160 308,000 Print Done its and in dollars? in units using the contribution margin approach. 0 More Info Kerrigan 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 $70,400 in its annual fixed costs while the average variable manufacturing cost per door would drop by $220. Print Done und in dollars2 units usi 0 Requirements 1. What is the company's current breakeven in units and in dollars? 2. If the company expects to sell 280 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? 3. If the software control system were to be developed and implemented, what would be the company's new breakeven point in units and in dollars? 4. If the company expects to sell 280 premium garage doors in the upcoming year, and it develops the software control system, what is its expected operating income from premium garage doors? 5. If the company expects to sell 280 premium 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? Print Done

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