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Kerrigan Garage Doors manufactures a premium garage door. Currently, the price and cost data associated with the premium garage door are as follows: (The first
Kerrigan Garage Doors manufactures a premium garage door. Currently, the price and cost data associated with the premium garage door are as follows:
Requirements 1. What is the company's current breakeven in units and in dollars? 2. If the company expects to sell 400 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? If the company expects to sell 400 premium garage doors in the upcoming year, and it develops the software control system, what is its expected operating income from premium garage doors? 4. tir 5. If the company expects to sell 400 premium garage doors in the upcoming year, do you think the company should implement the softwane control system? Why or why not? What factors should the company consider? Print Done the cont 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 ating income from pre n the upcor Print Done he software b Requirement 1. What is the company's current breakeven in units and in dolars? Begin by identifying the formula to compute the breakeven sales in units using the contribution margin approach. Breakeven sales in units breakeven point in units is units The breakeven point in dollars is $ Requirement 2. If the company expects to sell 400 premium garage doors in the upcoming year, and it does not develop the software cont Begin by identifying the formula to compute the operating income. If the company expects to sell 400 garage doors, and it does not develop the software control system, its expected operating income is $ Requirement 3. If the software control system were to be developed and implemented, what would be the company's new breakeven polnt if the company expects to sell 400 garage doors, and it does not develop the software control system, its expected 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 The breakeven point in units is units Requirement 4. If the company expects to sell 400 premium garage doors in the upcoming year, and it develops the software control system, what is its ex If the company expects to se400 garage doors, and it develops the software control system, its expected implement the software control system At this level of sales, implementing the software control system would result in a (The first picture of the requirements is the questions to requirement 1-5)
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