Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help! Howk Homes, incorporated makes one type of birdhouse that it sells for $30.60 each. its variable cost is $14.00 per house, and its

please help!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Howk Homes, incorporated makes one type of birdhouse that it sells for $30.60 each. its variable cost is $14.00 per house, and its fixed costs total $14,359.00 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: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1,240 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 eam $22,000 this year. Determine how many birdhouses it must sell to generate this amount of profit. Prepare a contribution margin income statement for Hawk assuming it sells 1,240 birdhouses this year. Note: Do not round your intermediate calculations, Enter your answers rounded to 2 decimal places. 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. 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%.). 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. Suppose Hawk wants to earn $22,000 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

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

Accounting and auditing research tools and strategies

Authors: Thomas Weirich, Thomas Pearson, Natalie Tatiana

8th edition

9781118806487, 1118027078, 1118806484, 978-1118027073

More Books

Students also viewed these Accounting questions

Question

What are the objectives of job evaluation ?

Answered: 1 week ago

Question

Write a note on job design.

Answered: 1 week ago

Question

Compute the derivative of f(x)cos(-4/5x)

Answered: 1 week ago

Question

Discuss the process involved in selection.

Answered: 1 week ago