Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Kingston Garage Doors manufactures a premium garage door. Currently, the price and cost data associated with the premium garage door are as follows (Click the
Kingston Garage Doors manufactures a premium garage door. Currently, the price and cost data associated with the premium garage door are as follows (Click the icon to view the data) Read the requirements More info (Click the icon to view more information.) Kingston Garage Doors has undertaken several sustainability 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 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 $65,000 in its annual fixed costs while the average vanable manufacturing cost per door would drop by $130 Data table Requirements 1. What is the company's cument breakeven in undir 2. If the company expects to sell 350 promum garage dooms in the upcoming year, and does not develop the software control system, what is expected operating come from premium garage 4. If the company expects to sell 380 pr garage doors in the upcoming year and develops the software control system is expected 5. If the company expects to set 350 pramugarage doors in the upcoming year do you think the company should inclement the software conto system? Why or why not? What factors should the company consider Average selling price per premium garage door..... 1.300 Average variable manufacturing cost per door 500 Average variable selling cost per door. 150 Total annual fixed costs. 208,000 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 Foxed expenses Operating income The breakeven point in units is Junita 1/ Contribution margin per unit Breakeven sales in units The breakeven point in dollars is $ Requirement 2. if the company expects to sell 360 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 (1) (2) Operating income If the company expects to sell360 garage doors, and it does not develop the software control system, its expected operating income is $ ere to be developed and implemented what would be the company's new breakeven Requirement 3. If the software control system were to b point in units and in dollars? The breakeven point in units The breakeven point in dollars is Requirement 4. If the company expects to sell 360 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 360 garage doors, and it develops the software control system, ts expected operating income is $ Requirement 5. If the company expects to sell 360 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? Kingston Garage Doors manufactures a premium garage door. Currently, the price and cost data associated with the premium garage door are as follows: (Click the icon to view the data.) Read the requirements i (Click the icon to view more information.) More info Kingston Garage Doors has undertaken several sustainability 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 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 $65,000 in its annual fixed costs while the average variable manufacturing cost per door would drop by $130. Requirements 1. What is the company's current breakeven in units and in dollars? 2. If the company expects to sell 360 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? 4. If the company expects to sell 360 premium garage doors in the upcoming year, and it develops the software control system, what is its expected operating income from premium garage doors? 5. If the company expects to sell 360 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? Data table Average selling price per premium garage door..... $ Average variable manufacturing cost per door .... Average variable selling cost per door.... 1,300 $ 500 $ 150 Total annual fixed costs. $ 208,000 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. Contribution margin per unit Breakeven sales in units ) Operating income Fixed expenses The breakeven point in units is units. The breakeven point in dollars is $ Requirement 2. If the company expects to sell 360 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. (1) (2) (3) Operating income If the company expects to sell 360 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 point in units and in dollars? The breakeven point in units is units The breakeven point in dollars is $ Requirement 4. If the company expects to sell 360 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 360 garage doors, and it develops the software control system, its expected operating income is $ Requirement 5. If the company expects to sell 360 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started