PA6-3 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point, Target Profit [LO 6-1, 6-2] Hawk...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66568053924eb_9796656805388653.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66568053e37ac_97966568053dd72d.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6656805464ecb_980665680545df8d.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66568054e3741_98066568054cc837.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/665680553e01f_981665680553732a.jpg)
Transcribed Image Text:
PA6-3 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point, Target Profit [LO 6-1, 6-2] Hawk Homes, Inc., makes one type of birdhouse that it sells for $29.10 each. Its variable cost is $13.80 per house, and its fixed costs total $13,142.70 per year. Hawk currently has the capacity to produce up to 2,700 birdhouses per year, so its relevant range is 0 to 2,700 houses. Required: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1,220 birdhouses this year. 2. Without any calculations, determine Hawk's total contribution margin if the company breaks even. 3. Calculate Hawk's contribution margin per unit and its contribution margin ratio. 4. Calculate Hawk's break-even point in number of units and in sales revenue. 5. Suppose Hawk wants to earn $28,000 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 1 Required 2 Required 3 Required 4 Required 5 Prepare a contribution margin income statement for Hawk assuming it sells 1,220 birdhouses this year. (Enter your answers rounded to 2 decimal places.) HAWK HOMES, INC. Contribution Margin Income Statement Contribution Margin Income from Operations PA6-3 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point, Target Profit [LO 6-1, 6-2] Hawk Homes, Inc., makes one type of birdhouse that it sells for $29.10 each. Its variable cost is $13.80 per house, and its fixed costs total $13,142.70 per year. Hawk currently has the capacity to produce up to 2,700 birdhouses per year, so its relevant range is 0 to 2,700 houses. Required: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1,220 birdhouses this year. 2. Without any calculations, determine Hawk's total contribution margin if the company breaks even. 3. Calculate Hawk's contribution margin per unit and its contribution margin ratio. 4. Calculate Hawk's break-even point in number of units and in sales revenue. 5. Suppose Hawk wants to earn $28,000 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 1 Required 2 Required 3 Required 4 Required 5 Prepare a contribution margin income statement for Hawk assuming it sells 1,220 birdhouses this year. (Enter your answers rounded to 2 decimal places.) HAWK HOMES, INC. Contribution Margin Income Statement Contribution Margin Income from Operations
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Cost of Bank Loan Gifts Galore Inc. borrowed $1.5 million from National City Bank. The loan was made at a simple annual interest rate of 9% a year for 3 months. A 20% compensating balance requirement...
-
Solution of the complete differential equations for wave motion without surface tension shows that wave speed is given by \[c=\sqrt{\frac{g \lambda}{2 \pi} \tanh \left(\frac{2 \pi y}{\lambda}...
-
M. Sanchez started a new business on 1 October. In your ledger write up the double entry accounts needed to record the following transactions: Oct 1 Started business by placing 5,000 in a business...
-
The comparative balance sheet of Fox Company, for the current year and the preceding year ended December 31, appears below in condensed form: current year preceding year Additional data for the...
-
Problem 2 Find the interest rates implied by each of the following: 2a. You borrow $1500 today and promise to repay the loan by making a single payment of $2114.00 in 5 years. 2b. You invest $500...
-
Please write a policy memorandum about The "Affordable Insulin for All Act of 2023." that have 6 references out of which 4 should be from peer-reviewed scholarly journals. references should be put in...
-
For f(x) = x + 5 and g(x) = 2x+2, find the following functions. a. (f g)(x); b. (g f)(x); c. (fog)( 1); d. (g o f)( 1)
-
The following information is taken from the record of Maximus Limited for the year ended 30 June: Operating profit before income tax $560000 Items included in operating profit before income tax...
-
Constructing the wave functions requires choosing a gauge. Consider first the Landau gauge: A =Bx. In this gauge, the dynamical momenta take the form II = Px = -ihx, IIy=py + eBx=-ihy+ 12 and the...
-
Equivalent annual cost: Your company decided to purchase a machine. Now, the business needs to decide which model to purchase. Two different models, with different characteristics will meet the needs...
-
Assume the average cost of computer equipment fell 21.2 percent between 2016 and 2017. Let's see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended...
-
The process of getting a job provides a window into various patterns of inequality within American society. In this section, I have informally recreated sociologist Devah Pager (and others) audit s
-
Analyse the reasons for the failure of Boo.com. Research and assess the sustain-ability of the new Boohoo.com business model.
-
What can existing businesses learn from the business approaches of digital organisations?
-
Compare and contrast different approaches to developing digital business strategy.
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App