= Homework: A-20 Question 2, E7-27A (slm... Part 8 of 9 Kerrigan Garage Doors manufactures a prerriur garage door. Currently, the price and cost dela associated will the premiun garage cloor are as follows: (Click the icon to view the data.) a (Click the icon to view more information.) Data table Next question Average selling price per premium garage door ....... $ Average variable manufacturing cost per door S Average variable selling cost per door S Tolal annual fixed costs $ 2,200 500 Read the requirements. . 160 3DB,ODD Requirement 1. What is the company's current breakeven in unils and in dollars? Begin by identifying the formula to compute the breakeven sales in units using the contribution margin approach. Fixed expenses + Operating Income / Contribution margin per unit - Breakeven sales in units Print Done The breakeven point in units is 200 units The breakeven point in dollars is S 440,0DD Requirement 2. If the company expects to sell 450 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. Sales revenue Variable expenses Fixed expenses Operating income If the company expects to sell 450 garage doors, and it does not develop the software control system, its expected operating income is $ 385,000 Requirement 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? The breakeven point in units is 215 units The breakeven point in dollars is S 473,000 Requirement 4. If the company expects to sell 450 premium garage doors in the upcoming year, and it develops the software control system, what is its expected operating income from premium garage doors? If the company expects to sell 450 garage doors, and it develops the software control system, its expected Operating income is $ 4138000 More info Kerrigaan Garage Doors has undertaken several sustain trility 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 reciuce 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 ils annual fixexi costs while the verge variable reinfacluring cost per door would drop by $220
