Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hawk Homes, Incorporated makes one type of birdhouse that it sells for $ 3 0 . 9 0 each. Its variable cost is $ 1

Hawk Homes, Incorporated makes one type of birdhouse that it sells for $30.90 each. Its variable cost is $14.60 per house, and its fixed costs total $14,164,70 per year. Hawk currently has the capacity to produce up to 3,000 birdhouses per year, so its relevant range is 0 to 3,000 houses.
Required:
Prepare a contribution margin income statement for Hawk assuming it sells 1,130 birdhouses this year.
Without any calculations, determine Hawk's total contribution margin if the company breaks even.
Calculate Hawk's contribution margin per unit and its contribution margin ratio.
Calculate Hawk's break-even point in number of units and in sales revenue.
Suppose Hawk wants to earn $23,000 this year. Determine how many birdhouses it must sell to generate this amount of profit.
Complete this question by entering your answers in the tabs below.
Required 2
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.
Total Contribution Margin
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISE Business Accounting

Authors: Frank Wood, Alan Sangster

8th Edition

0273638408, 9780273638407

More Books

Students also viewed these Accounting questions

Question

What needs do all people have in common?

Answered: 1 week ago

Question

Discuss how selfesteem is developed.

Answered: 1 week ago