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 $29.60 each. Its variable cost is $14.40 per house, and its fixed costs

Hawk Homes, Inc., makes one type of birdhouse that it sells for $29.60 each. Its variable cost is $14.40 per house, and its fixed costs total $13,208.80 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 1,250 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. (i.e. .1234 should be entered as 12.34%.)) 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 $21,000 this year. Determine how many birdhouses it must sell to generate this amount of profit. (Round up to the next whole number.)

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_2

Step: 3

blur-text-image_3

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

DOD Financial Management The Army Faces Significant Challenges In Achieving Audit Readiness For Its Military Pay

Authors: Government Accountability Office

1st Edition

1492310921, 978-1492310921

More Books

Students also viewed these Accounting questions

Question

Analyze the impact of labor unions on health care.

Answered: 1 week ago

Question

Assess three motivational theories as they apply to health care.

Answered: 1 week ago

Question

Discuss the history of U.S. labor unions.

Answered: 1 week ago