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 $30.10 each. Its variable cost is $13.50 per house, and its fixed costs total $14,292.60 per year. Hawk currently has the capacity to produce up to 2,500 birdhouses per year, so its relevant range is 0 to 2,500 houses.

Req. 1: Prepare a contribution margin income statement for Hawk assuming it sells 1,180 birdhouses this year.

Req. 2: Without any calculations, determine Hawk's total contribution margin if the company breaks even.

Req. 3: Calculate Hawk's contribution margin per unit and its contribution margin ratio.

Req. 4: Calculate Hawk's break-even point in number of units and in sales revenue.

Req. 5: Suppose Hawk wants to earn $29,000 this year. Determine how many birdhouses it must sell to generate this amount of profit.

PA6-3 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point, Target Profit [ LO 61,62] Hawk Homes, Inc, makes one type of birdhouse that it sells for $3010 each. its variable cost is $13.50 per house, and its fixed costs total $14,292.60 per year. Hawk currently has the capacity to produce up to 2,500 birdhouses per year, so its relevant range is 0 to 2,500 houses. Prepare a contribution margin income statement for Hawk assuming it sells 1,180 birdhouses this year. (Enter your answers rounded to 2 decimal places.) Without any calculations, determine Hawk's total contribution margin if the company breaks even. (Enter your answer rounded to 2 decimal places.) Calculate Hawk's contribution margin per unit and its contribution margin ratio. (Round your answers to 2 decimal places. (i.e. .1234 should be entered as 12.34%.)) Calculate Hawk's break-even point in number of units and in sales revenue. (Round your "Sales Revenue" answer to 2 decimal places and "Unit" answer to the nearest whole number.) Suppose Hawk wants to earn $29,000 this year. Determine how many birdhouses it must sell to generate this amount of profit. (Round your answer to the nearest whole number.)