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Hawk Homes, Inc., makes one type of birdhouse that it sells for $29.80 each. Its variable cost is $13.30 per house, and its fixed costs

Hawk Homes, Inc., makes one type of birdhouse that it sells for $29.80 each. Its variable cost is $13.30 per house, and its fixed costs total $14,388.00 per year. Hawk currently has the capacity to produce up to 2,000 birdhouses per year, so its relevant range is 0 to 2,000 houses.

Required:
1.

Prepare a contribution margin income statement for Hawk assuming it sells 1,100 birdhouses this year.(Enter your answers rounded to 2 decimal places.)

2.

Without any calculations, determine Hawks total contribution margin if the company breaks even. (Enter your answers rounded to 2 decimal places.)

3.

Calculate Hawks contribution margin per unit and its contribution margin ratio. (Round your answers to 2 decimal places.)

4.

Calculate Hawks 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 $24,000 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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