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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:
- Prepare a contribution margin income statement for Hawk assuming it sells 1,210 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 $25,000 this year. Determine how many birdhouses it must sell to generate this amount of profit.
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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