Kingston Garage Doors manufactures a premium garage door. Currently, the price and cost data associated with the premium garage door are as follows: II (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 resuit in an increase of $50,000 in its annual fixed costs while the average variable mamufacturing cost per door would drop by $100. Read the requirements. 1. What is the company's current breakeven point in units and in dollars? 2. If the company expects to sell 550 premium garage doors in the upcoming yoar, and it does not develop the software control system, what is its expected operating income from promium garage doors? 3. If the sofiware 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 550 premum garage doors in the upcorning year, and it dovelops the software control system, what is its expected operating income from prenium garage doors? 5. If the company expects to sell 550 premium garage doors in the upcoming year, do you think the company should implement the sofiware control system? Why or why not? What factors should the company consider? 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. Requirement 1. What is the company's current breokeven point in units and in doilars? (Round your arswers to the nearest whole number.) Begin by identifying the formula to compute the breakeven salbs in units using the contribution margin approach The breakeven point in units is = Breakeven sales in units The broakeven point in dollars is Requirement 2. If the company expects to sell 550 peemium garage doors in the upcoming year, and it does not develop the sofware control system, what is its expectod operating income from premium garago doors? Begin by identufying the formula to compute the operating income. If the company expects to sell 550 garage doors, and thoy do not develop the software control systom, ts expocted operating incorte is Requirement 3. It the soltware control system were to be developed and implemented, what would be the company's new breakeven point in unts and in dollars? The broakeven point in units is units. (Do nol round interim calculations.) The breakeven point in dollars is Requirement 4. If the company expects to sell 550 premium garage doors in the upooming year, and it develops the software control system, what is its expected operating income from premium garage doors? If the compary expects to sell 550 garage doors, and they develop the soltware control systern, its expected operating income is Requirement 5 . It the company expects to sell 550 premium garage doors in the upcoming yoar, do you think the company should implenent the soltware control system? Why or why not? What factors should the company considen? the compary implement the sottware control system. At this level of sales, implenionting the software control system would result in a operating inoome. The company should also consider
