Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mikey Braun admired his wife's success at selling scarves at local craft shows, so he decided to make two types of plant stands to sell

image text in transcribed

Mikey Braun admired his wife's success at selling scarves at local craft shows, so he decided to make two types of plant stands to sell at the shows. Mikey makes twig stands from twigs he collects from a friend's farm, so his variable cost is minimal (wood screws, glue, and so forth). However, Mikey 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 Mikey sells four twig stands for every one oak stand. Gabby charges her husband 360 to share her booth at the craft shows after all, she has paid the entrance fees). How many of each plant stand does Mikey need to sell to break even? Will this affect the number of scarves Gabby needs to sell to break even? Explain. Determine how many of each plant stands Mikey needs to sell to break-even. Begin by computing the weighted-average contribution margin per unit. First identify the formula labels, then complete the calculations step by step. Deduct: Weighted average contribution margin per unit Mikey Braun admired his wife's success at selling scarves at local craft shows, so he decided to make two types of plant stands to sell at the shows. Mikey makes twig stands from twigs he collects from a friend's farm, so his variable cost is minimal (wood screws, glue, and so forth). However, Mikey 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 Mikey sells four twig stands for every one oak stand. Gabby charges her husband 360 to share her booth at the craft shows after all, she has paid the entrance fees). How many of each plant stand does Mikey need to sell to break even? Will this affect the number of scarves Gabby needs to sell to break even? Explain. Determine how many of each plant stands Mikey needs to sell to break-even. Begin by computing the weighted-average contribution margin per unit. First identify the formula labels, then complete the calculations step by step. Deduct: Weighted average contribution margin per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials of Accounting for Governmental and Not-for-Profit Organizations

Authors: Paul A. Copley

10th Edition

007352705X, 978-0073527055

More Books

Students also viewed these Accounting questions