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Kris Rhode admired his wife's success at selling scarves at local crafts shows, so he decided to make two types of plant stands to
Kris 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. Kris makes twig stands t 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, Kis has to purchase wood to make his oak plant stands. His w (Click the loon to view the data) The big stands are more popular, so Kris sells four twig stands for every one oak stand. Ramona charges her husband $350 to share her booth at the craft shows (after all, she has paid the entrance fees). How many of eac plant stand does Kris need to sell to breakeven? Will this affect the number of scarves Ramona needs to sell to breakeven? Explain Determine how many of each plant stand Kris needs to sel to breakeven. Begin by computing the weighted average contribution margin per unit. First identify the formule labels, then complete the calculations step by step Twig Oak Total Data table Twig Stands Oak Blands Weighted average contribution margin per unit Sales price Variable cost. 14.00 2.00 40.00 18.00 Next determine the formula to c pute the breakeven sales in units (Abbreviations used Avg average and CM conbution margin) Breakeven sales in units Determine how many of each plant stands Kils needs to i breakeven Breakeven sales of twig stands is Breakeven sales of oak stands is units Will this affect the number of scarves Ramona needs to sell to breakeven? Explain. Print Done By charging her husband part of the craft fair entrance foes, her fad costs will Therefore, Ramona will need to sell scarves to breakeven than before her husband decided to share her craft booths
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