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Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point, Target Profit Hawk Homes, Inc., makes one type of birdhouse that it sells for $30.90 each. Its
Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point, Target Profit Hawk Homes, Inc., makes one type of birdhouse that it sells for $30.90 each. Its variable cost is $14.40 per house, and its fixed costs total $14, 173.50 per year. Hawk currently has the capacity to produce up to 2, 400 birdhouses per year, so its relevant range is 0 to 2, 400 houses. Required: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1, 270 birdhouses this year. (Enter your answers rounded to 2 decimal places.) 2. Without any calculations, determine Hawk's total contribution margin if the company breaks even. (Enter your answers rounded to 2 decimal places.) 3. Calculate Hawk's contribution margin per unit and its contribution margin ratio. (Round your answers to 2 decimal places.)
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