Hawk Homes, Inc. makes one type of birdhouse that it sells for $29.90 each. Its variable cost is $13.70 per house, and its fixed costs total $14.094.00 per year. Hawk currently has the capacity to produce up to 2.100 birdhouses per year, so its relevant.range is 0 to
2.100 houses
Required:
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1. Prepare a contribution margin income statement for Hawk assuming it sells 1,130 birdhouses this year.
2. Without any calculations, determine Hawk's total contribution margin if the company breaks even.
3. Golculate 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 $21,000 this year. Determine how many birdhouses it must sell to generate this amount of profit.