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K Nate Parker admired his wife's success at selling scarves at local crafts shows, so he decided to make two types of plant stands
K Nate Parker 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. Nate 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, Nate 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 Nate sells f entrance fees). How many of each plant stand do Determine how many of each plant stand Nate 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 Twig Oak Total Next determine the formula to compute the breakeven sales in units. (Abbreviations used: Avg. = average and CM = contribution margin.) = Breakeven sales in units Determine how many of each plant stands Nate needs to sell to breakeven. Data table Sales price $ Variable cost $ Twig Stands 17.00 $ 3.50 $ Oak Stands 45.00 14.00 Print Done Breakeven sales of twig stands is Breakeven sales of oak stands is units. units. Will this affect the number of scarves Katie needs to sell to breakeven? Explain. By charging her husband part of the craft fair entrance fees, her fixed costs will Therefore, Katie will need to sell scarves to breakeven than before her husband decided to share her craft booths.
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