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if you could please finish the problem and check my work to see if I got anything wrong that would be greatly appreciated. Arlan Cobb
if you could please finish the problem and check my work to see if I got anything wrong that would be greatly appreciated.
Arlan Cobb 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. Arlan 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, Arlan 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 Arlan sells four twig stands for every one oak stand. Susie charges her husband S455 to share her booth at the craft shows (after all, she has paid the entrance fees). How many of each plant stand does Arlan 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 Arlan 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 Twig Oak Total 30 13 2.5 Data Tablet Z 10.5 Sale price per unit Less: Variable cost per unit Contribution margin per unit Sales mix Contribution margin Weighted average contribution margin per unit 23 2 8 8.4 4.6 12 Sales price Twig Stands Oak Stands $ 13.00 S 30.00 $ 2.50 $ 7.00 Variable cost Next determine the formula to compute the breakeven sales in units. (Abbreviations used. Avg. = average and CM = contribution margin.) Fixed expenses Weighed-avg. CM per unit Units sold Breakeven sales in units Print Done Determine how many of each plant stands Arlan needs to sell to breakeven units Breakeven sales of twig stands is Breakeven sales of oak stands is units Will this affect the number of scarves Susie needs to sell to breakeven? Explain scarves to breakeven than before her husband decided to share her craft booths By charging her husband part of the craft fair entrance fees, her fixed costs will not change Therefore, Susie will need to sell more fields and then continue to the nextStep by Step Solution
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