Homework: Chapter 7 Homework (required) (D Question 5 Score: 0.5 of1 point lrby Garage Doors manufactures a premium garage door. Currently, the price and cost data associated with the premium garage door are as follows: a (Click the icon to view the data.) 0 (Click the icon to view more information.) Read the muiremenls. 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 un ( Fixed expenses + Operating income ) Data Table The breakeven point in units is 500 units. Average selling price per premium garage door . . . . 1,000 The breakeven point in dollars is $ 500,000 , Average variable manufacturing cost per door ..... 500 ' ' ........... 1 00 Requirement 2. If the company expects to sell 590 premium garage d Average variable selling cost per door Total annual fixed costs ...................... 200,000 Begin by identifying the formula to compute the operating income. Sales revenue . Variable expenses . If the company expects to sell 590 garage doors, and it does not dev- operating income is 11 operating income from premium garage doors? Question 5 Homework: Chapter 7 Homework (required) (D Score: 0.5 of1 point lrby Garage Doors manufactures a premium garage door. Currently, the price and cost data associated with the premium garage door are as follows: a (Click the icon to view the data.) 0 (Click the icon to view more information.) Read the muirements. Requirement 1. What is the company's current breakeven in unit Begin by identifying the formula to compute the breakeven sales in More Info ( Fixed expenses + Operating income The breakeven oint in units is 500 units Kirby Garage Doors has undertaken several sustainability projects over the past p ' few years. Management is currently evaluating whether to develop a comprehensive software control system for its manufacturing operations that would The breakeven point in dollars is 3 500.000 . signicantly 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 $50,000 in its annual xed costs while the average variable manufacturing cost per door would drop by $100. Requirement 2. If the company expects to sell 590 premium gara Begin by identifying the formula to compute the operating income. Sales revenue . Variable expenses If the company expects to sell 590 garage doors, and it does not of operating income is operating income from premium garage doors? Homework: Chapter 7 Homework (required) (D Question 5 Score: 0.5 of1 point lrby Garage Doors manufactures a premium gara-e door. Currently, the price and cost data associated with the premium garage door are as follows: a (Click the icon to view the data.) lick the icon to view more information.) Read the muiremenls. 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. ( Fixed expenses + Operating income )+ Contribution margin per unit = Breakeven sales in units The breakeven point in units is 500 units. The breakeven point in dollars is 3 500.000 . Requirement 2. If the company expects to sell 590 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 590 garage doors, and it does not develop the software control system, its expected operating income is
