PA6-3 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 each. Its variable cost is $15 per house, and its fixed costs total $13,840 per year. Hawk currently has the capacity to produce up to 2,000 birdhouses per year, so its relevant range is 0 to 2,000 houses. Required: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1,100 birdhouses this year. 2. Without any calculations, determine Hawks total contribution margin if the company breaks even. 3. Calculate Hawks contribution margin per unit and its contribution margin ratio. 4. Calculate Hawks break-even point in number of units and in sales revenue. (Round your "Unit" and "Sales Revenue" answers to the nearest whole number.) 5. Suppose Hawk wants to earn $20,000 this year. Determine how many birdhouses it must sell to generate this amount of profit. check my workreferencesebook & resources 2015 McGraw-Hill Education. All rights reserved. Requires a modern browser - e.g. Safari 1, Netscape 6 or IE 5