1.What is the company's current breakeven in units and in dollars?2.If the company expects to sell260premium 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 sell260premium 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 sell260premium 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?pop-up content endsPrintDone Dunlap Garage Doors has undertaken several sustainability projects over the pastfew years. Management is currently evaluating whether to develop acomprehensive software control system for its manufacturing operations that wouldsignificantly reduce scrap and waste generated during the manufacturing process.If the company were to implement this software control system in its manufacturingoperations, use of the software control system would result in an increase of$70,400 in its annual fixed costs while the average variable manufacturing cost perdoor would drop by $220. Average selling price per premium garage door$Average variable manufacturing cost per door ......$Average variable selling cost per door....Total annual fixed costs....GA$CA2,200500160308,000

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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1.	What is the company's current breakeven in units and in dollars?
2.	If the company expects to sell 260 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 260 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 260 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?

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Dunlap 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, use of the software control system would result in an increase of
$70,400 in its annual fixed costs while the average variable manufacturing cost per
door would drop by $220.

Average selling price per premium garage door
$
Average variable manufacturing cost per door ......$
Average variable selling cost per door....
Total annual fixed costs....
GA
$
CA
2,200
500
160
308,000

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