PA$6-3($Algo$)$ Calculating Contribution Margin, Contribution Margin Ratio,

Break$-$Even Point, Target Profit $[$LO $6-1,6-2]$

Hawk Homes, Incorporated makes one type of birdhouse that it sells for $$29\mathrm{.}40$ each. Its variable cost is $$14\mathrm{.}00$ per house, and its fixed costs total $$13,228\mathrm{.}60$ 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:

Prepare a contribution margin income statement for Hawk assuming it sells $1,230$ birdhouses this year.

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

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

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

Suppose Hawk wants to earn $$28,000$ this year. Determine how many birdhouses it must sell to generate this amount of profit.

Complete this question by entering your answers in the tabs below.

Required $1$

Required $3$

Required $4$

Prepare a contribution margin income statement for Hawk assuming it sells $1,230$ birdhouses this year. Note: Do not round your intermediate calculations. Enter your answers rounded to $2$ decimal places.

$\backslash$table$[[$HAWK HOMES, INCORPORATED$],[$Contribution Margin Income Statement$],[,],[,],[,],[,],[,],[,],[,],[,]]$

Required $1$

Required $2$

Required $3$

Required $4$

Required $5$

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.

Total Contribution Margin

Required $1$

Required $4$

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$.0\mathrm{.}1234$ should be entered as $12\mathrm{.}34\%.).$

$\backslash$table$[[$Unit Contribution Margin,$],[$Contribution Margin Ratio,$]]$

$\backslash$table$[[$Required $1,$Required $2,$Required $3,$Required $4]]$

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.

Break$-$Even Units

Birdhouses

Break$-$Even Sales Revenue

$$

Required $1$

Required $2$

Required $5$

Suppose Hawk wants to earn $$28,000$ this year. Determine how many birdhouses it must sell to generate this amount of

Note: Do not round your intermediate calculations. Round your answer to the nearest whole number. profit.

Target Unit Sales

$3$irdhouses