John Miller admired his wife's success at selling scarves at local craft shows (E7-28A), so he decided to make two types of plant stands to sell at the shows. John makes twig stands out of downed wood from his backyard and the yards of his neighbors, so his variable cost is minimal (wood screws, glue, and so forth). However, John has to purchase wood to make his oak plant stands. His unit prices and costs are as follows:
Twig Stands Oak Stands
Sales price........................................................................$18.00..................$38.00
Variable cost.....................................................................$ 3.00..................$ 8.00
The twig stands are more popular, so John sells four twig stands for every one oak stand. Elizabeth charges her husband $360 to share her booth at the craft shows (after all, she has paid the entrance fees). How many of each plant stand does John need to sell to break even? Will this affect the number of scarves Elizabeth needs to sell to break even? Explain.