Question
Hawk Homes, Incorporated makes one type of birdhouse that it sells for $31.60 each. Its variable cost is $15.00 per house, and its fixed costs
Hawk Homes, Incorporated makes one type of birdhouse that it sells for $31.60 each. Its variable cost is $15.00 per house, and its fixed costs total $14,508.40 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:
Please answer this as fast as possible please!
Prepare a contribution margin income statement for Hawk assuming it sells 1,270 birdhouses this year.
Without any calculations, determine Hawks total contribution margin if the company breaks even.
Calculate Hawks contribution margin per unit and its contribution margin ratio.
Calculate Hawks break-even point in number of units and in sales revenue.
Suppose Hawk wants to earn $28,000 this year. Determine how many birdhouses it must sell to generate this amount of profit.
repare a contribution margin income statement for Hawk assuming it sells 1,270 birdhouses this year. ote: Do not round your intermediate calculations. Enter your answers rounded to 2 decimal places. Complete this question by entering your answers in the tabs below. Without any calculations, determine Hawk's total contribution margin if the company breaks even. Note: Do not round your intermediate calculations. Enter your answer rounded to 2 decimal places. Complete this question by entering your answers in the tabs below. Calculate Hawk's contribution margin per unit and its contribution margin ratio. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. (Percentage answer, i.e. 0.1234 should be entered as 12.34%.). Complete this question by entering your answers in the tabs below. Calculate Hawk's break-even point in number of units and in sales revenue. Note: Do not round your intermediate calculations. Round your "Sales Revenue" answer to 2 decimal places and "Unit" answer to the nearest whole number. Complete this question by entering your answers in the tabs below. Suppose Hawk wants to earn $28,000 this year. Determine how many birdhouses it must sell to generate this amount of profit. Note: Do not round your intermediate calculations. Round your answer to the nearest whole numberStep 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