Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 $28.90 each. Its variable cost is $13.70 per house, and its fixed costs total $12.996.00 per year. Hawk currently has the capacity to produce up to 2,800 birehouse's per year, so its relevant range is 0 to 2.800 houses Required: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1,120 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 $22.000 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. Rewed 1 Required 3 Required 4 Required Prepare a contribution margin income statement for Hawk assumingit sells 1,120 birdhouses this year. (Cator your answers rounded to 2 decimal places) HAWK HOMES, INC Contribution Margin income Statement HAWK HOMES, INC. Contribution Margin Income Statement Contribution Margin Income from Operations Required 1 Required 2 Required 3 Required 4 Required 5 Without any calculations, determine Hawk's total contribution margin if t rounded to 2 decimal places.) Total Contribution Margin

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_2

Step: 3

blur-text-image_3

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

The Controllers Toolkit

Authors: Christine H. Doxey

1st Edition

1119700647, 9781119700647

More Books

Students also viewed these Accounting questions