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Hawk Homes, Inc., makes one type of birdhouse that it sells for $31.20 each. Its variable cost is $14.30 per house, and its fixed costs
Hawk Homes, Inc., makes one type of birdhouse that it sells for $31.20 each. Its variable cost is $14.30 per house, and its fixed costs total $14, 618.50 per year. Hawk currently has the capacity to produce up to 2, 900 birdhouses per year, so its relevant range is 0 to 2, 900 houses. Required: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1, 290 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.) Total Contribution Margin 3. Calculate Hawk's contribution margin per unit and its contribution margin ratio. (Round your answers to 2 decimal places. (i.e. 1234 should be entered as 12.34%.)) 4. Calculate Hawk's break-even point in number of units and in sales revenue. (Round your "Sales Revenue" answer to 2 decimal places and "Unit" answer to the nearest whole number.) 5. Suppose Hawk wants to earn 524,000 this year. Determine how many birdhouses it must sell to generate this amount of profit. (Round up to the next whole number.)
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