0.89 point Hawk Homes, Inc, makes one type of birdhouse that it seils for $30.60

Question

0.89 point Hawk Homes, Inc, makes one type of birdhouse that it seils for $30.60 each Its variable cost is $14.60 per house, and its fxed costs total $13,808.00 per year Hawk currently has the capacity to produce up to 2,300 birdhouses per year, so ts relevant range is 0 to 2,300 houses 1.Prepare a contribution margin income statement for Hawk assuming it sells 1,190 birdhouses this year (Enter your answers rounded to 2 decimal places) 2. Without any calculations, determine Hawk's total contribution margin if the company breaks even. (Enter your answers rounded to 2 company breaks even. (Enter your answers rounded to 2 decimal places) command option

Explanation / Answer

1 Contribution margin income statement Total amount Per unit Sales revenue 36414 30.6 Variable cost 17374 14.6 Contribution margin 19040 16 Fixed cost 13808 Net operating income 5232 2 Contribution margin at breakeven is 13808 3 Contribution margin per unit 16 Contribution margin ratio 52.29% 4 Breakeven in units = Fixed cost /contribution margin per unit Fixed cost 13808 Contribution margin per unit 16 Breakeven in units 863 Units Breakeven in dollars = Fixed cost / contribution margin ratio Fixed cost 13808 Contribution margin ratio 52.29% Breakeven in dollars 26407.80 5 Target units sale = (fixed cost +target profit) / contribution margin per unit Fixed cost 13808 Target profits 22000 Total 35808 Contribution margin per unit 16 Target units sale 2238 Units

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