please only question below. top question got added twice by accident. thank you
Gordon's Steel Parts produces parts for the automobile industry. The company has monthly fixed expenses of $650,000 and a contribution margin of 90% of revenues. Gordon feels like he's in a giant squeeze play. The automotive manufacturers are demanding lower prices, and the steel producers have increased raw material costs. Gordon's contribution margin has shrunk to 60% of revenues. The company's monthly operating income, prior to these pressures, was $268,000 Read the requirements Requirement 1. To maintain this same level of profit, what sales volume (in sales revenue) must Gordon now achieve? Begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach 3. Target sales in dollars! A X - Requirements 1. To maintain this same level of profit, what sales volume (in sales revenue) must Gordon now achieve? 2.Gordon believes that his monthly sales revenue will only go as high as $1,020,000. He is thinking about moving operations overseas to cut fixed costs If monthly sales are $1,020,000, by how much will he need to cut fixed costs to maintain his prior profit level of $268,000 per month? Kenmore 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.) (Click the icon to view more information.) Read the requirements 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. = Breakeven sales in units * Requirements = 1. What is the company's current breakeven in units and in dollars? 2. If the company expects to sell 420 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 420 premium garage doors in the upcoming year, and it develops the software control system, what is its expected operating income from premium garage doors? 6. If the company expects to sell 420 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? = * More Info Kenmore 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 $120,000 in its annual fixed costs while the average variable manufacturing cost per door would drop by $240. Print Done Data Table Average selling price per premium garage door......! Average variable manufacturing cost per door ........$ Average variable selling cost per door Total annual fixed costs.... 2,400 1,000 200 240,000
