Mikey Brown 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. Mikey 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, 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. Susie charges her husband $240 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 breakeven? Will this affect the number of scarves Susie needs to sell to breakeven? Explain. Determine how many of each plant stand Mikey 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 Less: Data table Twig Stands Oak Stands Weighted average contribution margin per unit Sales price $ 16.00 $ Variable cost $ 2.00 $ 39.00 15.00 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 Mikey needs to sell to breakeven. Breakeven sales of twig stands is Breakeven sales of oak stands is units. units. Will this affect the number of scarves Susie needs to sell to breakeven? Explain. Print Done By charging her husband part of the craft fair entrance fees, her fixed costs will Therefore, Susie will need to sell scarves to breakeven than before her husband decided to share her craft booths