Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hawk Homes, Inc., makes one type of birdhouse that it sells for $28.70 each. Its variable cost is $13.40 per house, and its fixed costs
Hawk Homes, Inc., makes one type of birdhouse that it sells for $28.70 each. Its variable cost is $13.40 per house, and its fixed costs total $13,295.70 per year. Hawk currently has the capacity to produce up to 3,000 birdhouses per year, so its relevant range is 0 to 3,000 houses. Required: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1,180 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 $21,000 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 1,180 birdhouses this year. (Enter your answers rounded to 2 decimal places.) HAWK HOMES, INC. Contribution Margin Income Statement Contribution Margin Income from Operations Required 1 Required 2 Required 3 Required 4 Required 5 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 Required 1 Required 2 Required 3 Required 4 Required 5 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 % Required 1 Required 2 Required 3 Required 4 Required 5 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Suppose Hawk wants to earn $21,000 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 Units
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started