E4-24A (similar to) Question Help Kassidy 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.) Kassidy 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 570,400 in its annual fixed costs, while the average variable manufacturing cost per door would drop by $220. Requirements Requirement 1. What is the company's current break-even in units and in dollars? Begin by identifying the formula to compute the break-even sales in units using the contribution margin approach. - Break-even sales in units Choose from any drop-down list and then click Check Answer afactures a premium garage door. Currently the price and cost data associated with the premium garage door a the data.) ndertaken several sustainability projects over the past few years. Management is currently evaluating whether rol system for its manufacturing operations that would significantly reduce scrap and waste generated during ent this software control system in its manufacturing operations, the use of the software control system would sts, while the average variable manufacturing cost per door would drop by $220. i Data Table - X company's a to come + $ 2,200 nits 500 Average selling price per premium garage door..... Average variable manufacturing cost per door ....... Average variable selling cost per door Total annual fixed costs GA GA 160 $ 308,000 Print Done Win the premium garage door are ata.) ken several sustainability projects over the past few years. Management is currently evaluating whether to during the h would res Requirements N 1. What is the company's current break-even in units and in dollars? 2. If the company expects to sell 420 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 break-even point in units and in dollars? 4. If the company expects to sell 420 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 420 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
