Hawk Homes, Inc., makes one type of birdhouse that it sells for $30.40 each. Its variable...

Question

Question

Hawk Homes, Inc., makes one type of birdhouse that it sells for $30.40 each. Its variable cost is $13.40 per house, and its f

Saved Hawk Homes, Inc., makes one type of birdhouse that it sells for $30.40 each. Its variable cost is $13.40 per house, and

Hawk Homes, Inc., makes one type i biurouse o Sen cotal $14,688.00 per year. Hawk currently has the capacity to produce up to

total $14,688.00 per year. Hawk currently has the capacity to produce up to 2,400 birdhouse 2,400 houses. Required: 1. Prepar

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

1) Contribution margin income statement
sales (1210*30.40)			36784
less: variable cost (1210*13.40)			16214
contribution margin			20570
less: fixed cost			14688
Income from operation			5882

2 at breakeven Total contribution margin will be equal to
fixed cost
therefore total contibution margin = 14688

3)Contribution margin per unit = contibution margin/sale
contribution margin per unit = 20570/1210 = 17
contribution margin ratio = contribution margin p.u/sale p.u
contribution margin ratio = 17/30.40 = 55.92%

4) Breakeven point = fixed cost/contribution margin p.u
breakeven point = 14688/17 = 864 unit

Breakeven sale revenue = fixed cost/contribution margin ratio
breakeven sale revenue = 14688/55.92% = 26266

5) target unit sale = (fixed cost+profit)/contribution unit
target unit sale = (14688+20000)/17
target unit sale = 2040 units

Please give a thumbs up if it is helpful & let me know if any doubt

Add a comment

Answer 2

Similar Homework Help Questions

Hawk Homes, Inc., makes one type of birdhouse that it sells for $30.40 each. Its variable...

Hawk Homes, Inc., makes one type of birdhouse that it sells for $30.40 each. Its variable cost is $14.90 per house, and its fixed costs total $13,314.50 per year. Hawk currently has the capacity to produce up to 2,700 birdhouses per year, so its relevant range is O to 2,700 houses. points Required: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1,260 birdhouses this year. 2. Without any calculations, determine Hawk's total contribution margin if the...
Hawk Homes, Inc., makes one type of birdhouse that it sells for $30.50 each. Its variable...

Hawk Homes, Inc., makes one type of birdhouse that it sells for $30.50 each. Its variable cost is $14.90 per house, and its fixed costs total $13,494.00 per year. Hawk currently has the capacity to produce up to 2,800 birdhouses per year, so its relevant range is Oto 2,800 houses. Required: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1,260 birdhouses this year. 2. Without any calculations, determine Hawk's total contribution margin if the company breaks...
Hawk Homes, Inc., makes one type of birdhouse that it sells for $30.00 each. Its variable...

Hawk Homes, Inc., makes one type of birdhouse that it sells for $30.00 each. Its variable cost is $14.10 per house, and its fixed costs total $13,864.80 per year. Hawk currently has the capacity to produce up to 2,900 birdhouses per year, so its relevant range is Oto 2,900 houses. Required: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1,110 birdhouses this year. 2. Without any calculations, determine Hawk's total contribution margin if the company breaks...

Hawk Homes, Inc., makes one type of birdhouse that it sells for $30.50 each. Its variable...

Hawk Homes, Inc., makes one type of birdhouse that it sells for $30.50 each. Its variable cost is $13.60 per house, and its fixed costs total $14,483.30 per year. Hawk currently has the capacity to produce up to 2,600 birdhouses per year, so its relevant range is 0 to 2,600 houses. Required: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1,220 birdhouses this year. 2. Without any calculations, determine Hawk's total contribution margin if the company...
Hawk Homes, Inc., makes one type of birdhouse that It sells for $31.30 each. Its varlable...

Hawk Homes, Inc., makes one type of birdhouse that It sells for $31.30 each. Its varlable cost is $15.00 per house, and its fixed costs total $14,229.90 per year. Hawk currently has the capacity to produce up to 2,500 birdhouses per year, so its relevant range is O to 2,500 houses. Required: 1. Prepare a contri bution margin income statement for Hawk assuming it sells 1,250 birdhouses this year. 2. Without any calculations, determine Hawk's total contribution margin if the...
PA6-3 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point, Target Profit [LO 6-1, 6-2) Hawk...

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 $30.50 each. Its variable cost is $13.80 per house, and its fixed costs total $14,462.20 per year. Hawk currently has the capacity to produce up to 2,200 birdhouses per year, so its relevant range is O to 2.200 houses. Required: 1. Prepare a contribution margin income statement for Hawk assumingit sells 1,110 birdhouses...

Red Hawk Enterprises sells handmade clocks. Its variable cost per clock is $4.80, and each clock...

Red Hawk Enterprises sells handmade clocks. Its variable cost per clock is $4.80, and each clock sells for $16.00. Calculate Red Hawk's unit contribution margin. Calculate Red Hawk's contribution margin ratio. Suppose Red Hawk sells 1,700 clocks this year. Calculate the total contribution margin.
M5-19 (Algo) Calculating Unit Contribution Margin and Contribution Margin Ratio [LO 5-5) Red Hawk Enterprises sells...

M5-19 (Algo) Calculating Unit Contribution Margin and Contribution Margin Ratio [LO 5-5) Red Hawk Enterprises sells handmade clocks. Its variable cost per clock is $6.00, and each clock sells for $13.00. Calculate Red Hawk's unit contribution margin. Calculate Red Hawk's contribution margin ratio. Suppose Red Hawk sells 2,150 clocks this year. Calculate the total contribution margin. Complete this question by entering your answers in the tabs below. Unit CM CM Ratio Total CM S Calculate Red Hawk's unit contribution margin....
Minden Company manufactures a high-quality wooden birdhouse that sells for $20 per unit. Variable costs are...

Minden Company manufactures a high-quality wooden birdhouse that sells for $20 per unit. Variable costs are $6 per unit, and fixed costs total $180,000. The company sold 24,000 birdhouses to customers during 2018. The president of Minden Company believes the following changes should be made in 2019: 1. the selling price of the birdhouse should be reduced by 10% 2. increase advertising by $30,000 Assume these changes are made to complete the following; 1) Calculate the number of units Minden...

Juniper Enterprises sells handmade clocks. Its variable cost per clock is $23.80, and each clock sells for $34.

Juniper Enterprises sells handmade clocks. Its variable cost per clock is $23.80, and each clock sells for $34. Calculate Juniper's contribution margin per unit and contribution margin ratio. If the company's fixed costs total $7,446, determine how many clocks Juniper must sell to break even Calculate Juniper's contribution margin per unit and contribution margin ratio. (Round your "Unit Contribution Margin" answer to 2 decimal places.) If the company's fixed costs total $7,446, determine how many docks Juniper must sell t break even.

Hawk Homes, Inc., makes one type of birdhouse that it sells for $30.40 each. Its variable...

Homework Answers