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Eddie Carter admired his wife's success at selling scarves at local crafts shows, so he decided to make two types of plant stands to
Eddie Carter 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 Eddie 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, Eddie has to purchase wood to make his oak plant stands His unit prices and costs are as follows The twig stands are more popular, so Eddie sells four twig stands for every one oak stand Julie charges ber husband $240 to share her booth at the craft shows (after all, she has paid the entrance fees) How many of each plant stand does Eddie need to sell to breakeven? Will this affect the number of scarves Julle needs to sell to breakeven? Explain Determine how many of each plant stand Eddie 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 Sale price per unit Less Variable cost per unit Contribution margin per unit Sales mix Weighted average contribution margin per unit Twig Oak Total 16 39 2 15 14 24 4/5 1/5 11/2 48 Next determine the formula to compute the breakeven sales in units (Abbreviations used Avg average an Determine how many of each plant stands Eddie needs to sell to breakeven Brea Data table D Twig Stands Sales price Variable costs Ook Stands 16:00 5 2.00 $ 39.00 15.00 Print Done Breakeven sales of twig stands is units Breakeven sales of oak stands is units Will this affect the number of scarves Julie needs to sell to breakeven? Explain. By charging her husband part of the craft fair entrance fees, her fixed costs will husband decided to share her craft booths Therefore Jule will need to sell scarves to breakeven than before her Get more help Next
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