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Bobby Walker 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 Walker 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 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, Bobby has to purchase wood to make his oak plant stands. His unit prices and costs are as follows: (Click the icon to view the data.) The twig stands are more popular, so Bobby sells four twig stands for every one oak stand. Susie charges her husband $510 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 to breakeven? Will this affect the number of scarves Susie needs to 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. Less: Weighted average contribution margin per unit Bobby Walker 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 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, Bobby has to purchase wood to make his oak plant stands. His unit prices and costs are as follows: (Click the icon to view the data.) The twig stands are more popular, so Bobby sells four twig stands for every one oak stand. Susie charges her husband $510 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 to breakeven? Will this affect the number of scarves Susie needs to 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. Less: Weighted average contribution margin per unit
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