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Hawk Homes, Inc., makes one type of birdhouse that it sells for $30.80 each. Its variable cost is $14.80 per house, and its fixed costs
Hawk Homes, Inc., makes one type of birdhouse that it sells for $30.80 each. Its variable cost is $14.80 per house, and its fixed costs total $13,744.00 per year. Hawk currently has the capacity to produce up to 2,800 birdhouses per year, so its relevant range is Oto 2.800 houses Required: 1. Prepare a contribution margin Income statement for Hawk assuming It sells 1,150 birdhouses this year. 2 without any calculations, determine Hawk's total contribution margin if the company breaks even. 3. Calculate Hawk's contribution margin per unit and its contribution margin ratio. 4. Calculate Hawk's break-even point in number of units and in sales revenue. 5. Suppose Hawk wants to earn $27.000 this year. Determine how many birdhouses it must sell to generate this amount of profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a contribution margin income statement for Hawk assuming it sells 1,150 birdhouses this year. (Enter your answers rounded to 2 decimal places.) HAWK HOMES, INC. Contribution Margin Income Statement Sales Revenue S 35,420.00 Variable Costs (17.020.00) Contribution Margin Fixed Costs 18.400.00 13,744.00 Income from Operations $ 4,858.00 Without any calculations, determine Hawk's total contribution margin if the company breaks even. (Enter your answer rounded to 2 decimal places.) Total Contribution Margin $ 13,744.00 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%.)) Unit Contribution Margin Contribution Margin Ratio 18.00 51.94% 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.) 881 Units Break-Even Units Break-Even Sales Revenue $ 26,518.80 Suppose Hawk wants to earn $27,000 this year. Determine how many birdhouses it must sell to generate this amount of profit. (Round your answer to the nearest whole number.) Target Unit Sales 2,547 Units
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