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 $31.00 each. Its variable cost is $14.00 per house, and its fixed costs

Hawk Homes, Inc., makes one type of birdhouse that it sells for $31.00 each. Its variable cost is $14.00 per house, and its fixed costs total $14,739.00 per year. Hawk currently has the capacity to produce up to 2,200 birdhouses per year, so its relevant range is 0 to 2,200 houses. image text in transcribedimage text in transcribed

Hawk Homes, Inc., makes one type of birdhouse that it sells for $31.00 each. Its variable cost is $14.00 per house, and its fixed costs total $14,739.00 per year. Hawk currently has the capacity to produce up to 2,200 birdhouses per year, so its relevant range is 0 to 2,200 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 Income from Operations 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%) Unit Contribution Margin 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 Units Break-Even Sales Revenue 5. Suppose Hawk wants to earn $28,000 this year. Determine how many birdhouses it must sell to generate this amount of profit. (Round up to the next whole number.) Target Unit Sales Units

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

More Books

Students also viewed these Accounting questions