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Killington Garage Doors manufactures a premium garage door. Currently, the price and cost data associated with the premium garage door are as follows: B (Click
Killington Garage Doors manufactures a premium garage door. Currently, the price and cost data associated with the premium garage door are as follows: B (Click the icon to view the data.) If the company were to implement this software control system in its manufacturing operations, use of the software control system would result in an increase Read the requirements $65,000 in its annual fixed costs while the average variable manufacturing cost per door would drop by $130. Requirement 1. What is the company's current breakeven point in units and in dollars? (Round your answers to the nearest whole number.) Begin by identifying the formula to compute the breakeven sales in units using the contribution margin approach. Breakeven sales in units The breakeven point in units is 1 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 control system, what is its expected operating income from premium garage doors? Begin by identifying the formula to compute the operating income. Operating income If the company expects to sell 400 garage doors, and they do 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 point in units and in dollars? The breakeven point in units is units (Do not round interim calculations.) The breakeven point in dollars is 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 expected operating income from premium garage doors? If the company expects to sell 400 garage doors, and they develop the software control system, its expected operating income is Requirement 5. If the company expects to sell 400 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? the company implement the software control system. At this level of sales, implementing the software control system would result in a operating income. The company should also consider Killington Garage Doors manufactures a premium garage door. Currently, the price and cost data associated with the premium garage door are as follows: B (Click the icon to view the data.) If the company were to implement this software control system in its manufacturing operations, use of the software control system would result in an increase Read the requirements $65,000 in its annual fixed costs while the average variable manufacturing cost per door would drop by $130. Requirement 1. What is the company's current breakeven point in units and in dollars? (Round your answers to the nearest whole number.) Begin by identifying the formula to compute the breakeven sales in units using the contribution margin approach. Breakeven sales in units The breakeven point in units is 1 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 control system, what is its expected operating income from premium garage doors? Begin by identifying the formula to compute the operating income. Operating income If the company expects to sell 400 garage doors, and they do 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 point in units and in dollars? The breakeven point in units is units (Do not round interim calculations.) The breakeven point in dollars is 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 expected operating income from premium garage doors? If the company expects to sell 400 garage doors, and they develop the software control system, its expected operating income is Requirement 5. If the company expects to sell 400 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? the company implement the software control system. At this level of sales, implementing the software control system would result in a operating income. The company should also consider
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