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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 $13,239.20 per year. Hawk currently has the capacity to produce up to 2,900 birdhouses per year, so its relevant range is 0 to 2,900 houses. Required: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1,130 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 $22,000 this year. Determine how many birdhouses it must sell to generate this amount of profit. Prepare a contribution margin income statement for Hawk assuming it sells 1,130 birdhouses this year. (Enter your answe rounded to 2 decimal places.) HAWK HOMES, INC. Contribution Margin Income Statement Sales Revenue Variable Costs Contribution Margin Fixed Costs Income from Operations 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 $ 13.239.20 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. .1234 should be entered as 12.34%.)) Unit Contribution Margin Contribution Margin Ratio % Calculate Hawk's break-even point in number of units and in sales revenue. (Round your "Sales Revenue" answer to 2 dec places and "Unit" answer to the nearest whole number.) Break-Even Units Break-Even Sales Revenue Units Required 1 Required 2 Required 3 Required 4 Required 5 Suppose Hawk wants to earn $22,000 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
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