Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hawk Homes, Inc., makes one type of birdhouse that it sells for $29.80 each. Its variable cost is $14.50 per house, and its fixed costs

image text in transcribed
image text in transcribed
image text in transcribed
Hawk Homes, Inc., makes one type of birdhouse that it sells for $29.80 each. Its variable cost is $14.50 per house, and its fixed costs total $13,280.40 per year. Hawk currently has the capacity to produce up to 2,300 birdhouses per year, so its relevant range is 0 to 2,300 houses. Required 1. 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 Contribution Margin ncome from Operations 2. Without any calculations, determine Hawk's total contribution margin if the company breaks even. (Enter DEC FI 80 FS 2 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 Margirn 3. Calculate Hawk's contribution margin per unit and its contribution margin ratio. (Round your answers to 2 decimal places.) Unit Contribution Margin Contribution Margin Ratio 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.) DEC 80 FI F3 F4 F5 F6 7 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.) Break-Even Units Break-Even Sales Revenue Units 5. Suppose Hawk wants to earn $29,000 this year. Determine how many birdhouses i must sell to generate this amount of profit. (Round up to the next whole number.) Unit Sales Units References eBook & Resources DEC 20 FI F3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Organisational Change Audit

Authors: Ralph Houston

1st Edition

1907766014, 978-1907766015

More Books

Students also viewed these Accounting questions

Question

6. Does your speech have a clear and logical structure?

Answered: 1 week ago