Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bobby Rhode admired his wife's success at selling scarves at local crafts shows, so he decided to make two types of plant stands to sell
Bobby Rhode admired his wife's success at selling scarves at local crafts shows, so he decided to make two types of plant stands to sell at the shows. Bobby makes twig stands out downed wood from his backyard and the yards of his neighbors, so his variable cost is minimal (wood screws, glue, and so forth). However, Bobby has to purchase wood to make his oak plant stands. His unit prices and costs are as follows: B (Click the icon to view the data.) The twig stands are more popular, so Bobby sells four twig stands for every one oak stand. Allison charges her husband $255 to share her booth at the craft shows (after all, she has paid the entrance fees). How many of each plant stand does Bobby need to sell breakeven? Will this affect the number of scarves Allison needs sell to breakeven? Explain. Determine how many of each plant stand Bobby needs to sell to breakeven. Begin by computing the weighted average contribution margin per unit. First identify the formula labels, then complete the calculations step by step. Data Table Less Twig Stands Oak Stands $ 17.00 $ 42.00 Sales price Variable cost. 3.50 $ 11.00 Weighted average contribution margin per unit Print Done
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started