Hawk Homes, Inc., makes one type of birdhouse that it sells for $29.90 each. Its variable cost is $14.30 per house, and its fixed costs total $13,478.40 per year. Hawk currently has the capacity to produce up to 2,500 birdhouses per year, so its relevant range is 0 to 2,500 houses. Required: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1,100 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 $29,000 this year. Determine how many birdhouses it must sell to generate this amount of profit. (Round up to the next whole number.)

1.

HAWK HOMES, INC.
Contribution Margin Income Statement
Contribution Margin
Income from Operations

2. total contribution margin =

3. Unit contribution margin =

Contribution Margin Ratio =

4. Break Even Units =

Break Even Sales Revenue =

5. Target Unit Sales