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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
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: B (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. - Data Table Deduct: Oak Stands Twig Stands $ 18.00 3.00 $ Sales price Variable cost 38.00 8.00 Weighted-average contribution margin per unit Print Done
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