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Hawk Homes, Incorporated makes one type of birdhouse that it sells for $30.60 each. Its variable cost is $14.30 per house, and its fixed costs

Hawk Homes, Incorporated makes one type of birdhouse that it sells for $30.60 each. Its variable cost is $14.30 per house, and its fixed costs total $14,213.60 per year. Hawk currently has the capacity to produce up to 2,300 birdhouses per year, so its relevant range is 0 to 2,300 houses.

Required:

  1. Prepare a contribution margin income statement for Hawk assuming it sells 1,210 birdhouses this year.
  2. Without any calculations, determine Hawks total contribution margin if the company breaks even.
  3. Calculate Hawks contribution margin per unit and its contribution margin ratio.
  4. Calculate Hawks break-even point in number of units and in sales revenue.
  5. Suppose Hawk wants to earn $25,000 this year. Determine how many birdhouses it must sell to generate this amount of profit.
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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. 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%.). 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. Prepare a contribution margin income statement for Hawk assuming it sells 1,210 birdhouses this year. Note: Do not round your intermediate calculations. Enter your answers rounded to 2 decimal places. Suppose Hawk wants to earn $25,000 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 number

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