E7-27A (similar to) Krkland Garage Doors manufacturee a premium garage door. Currently, the price and coet data associated with the premium garage door are a8 folows: EEE (Click the icon so view the data.) Read the requirements. n Help (Click the icon to view more information.) 1. What thecompary's current breakeven in units and in dollars? 2. the company expects to 81 560 premium garage doors in the upcoming year, and it does not develop the software control system, what is its Requirement 1. What is the compary's current breakeven in units and in dollars? expected operating income from premium garage doors? 3. the software control system were to be developed and implemented, what would be the companys new breakeven point in urits and in dolars? 4. the company expects to sel 580 premium garage doors in the upcoming year, and it develops the software control system, what is its expected Begin by identitying the formula bo compute the breakeven sales in units using the contribution margin approach. Fixed expenses Operating income )/ Contribution margin per unit = Breakeven sales unts + operating income trom premium gerege doors? 500 units 5. the compary expects to sel 560 premium garage doors in the upcoming year, do you think the company should implement the software contro systom? Why or why not? What factors should the company consider? The breakeven point in units s The breakeven point in dolars is $ 500,000 Requirement 2. If the company expects to sell 580 premium garage doors in the upcoming year, and i does rot develop the software control system, what is its expected o Begin by identitying the formula bo compute the operating income Print Done Sales revenue Variable expenses Fixed expenses It the company expects to sel 560 garage doors, and it does not develop the software control system, its expected operaing income is $ 24,000 Requirement 3. If the software control system were to be developed ard implemented, what would be the company's new breakeven point in units and in dollars? The brealoeven point in units is 500 unts More Info The breakeven point in dolars is $ 500,000 Requirement 4. If the company expecte to 8ell 560 premium garage doors in the upcoming year, and t develops the software control syecem, what ie its expectad operaing ircome from premium garage If the compary expects to sel 560 garage doors, and it develops the software control system, its expected operating income is 24000 Kirkland Garage Doors has undertaken several sustainability projects over the pas few years. Management is cumently evaluating whether to develop comprehensive software control system for its manufacturing operations thatwoul significantly reduce scrap and waste generated during the manufactuning process If the company were to implement this sotware contral system in its manufacturing operatons, the use of the software control system would esult in an increase of 850,000 in its annual Tooed costs we the average variable manufacturing cost pe door would drop by $100. Data Table Print Done Average seling price per premium garage door Average variable marufacturing cost per door Average variable selling cost per door Total annual fxed costs 1,000 500 100 200,000 Enter any number in the edit fields and then click Check Answer Final Check
