Nate Carter 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 four twig stands for every one oak stand. Ramona charges her husband $510 to share her booth at the craft shows (after all, she has paid the entrance fees). How many of each plant stand does Nate need to sell to breakeven? Will this affect the number of scarves Ramona needs to sell to breakeven? Explain. Sale price per Unit 17.00 45.00 Less Variable cost per unit 3.50 14.00 Contribution margin per unit 13.50 31.00 Sales mix Weighted average contribution margin per unit Next determine the formula to compute the breakeven sales in units. (Abbreviations used: Avg. average and CM = contribution margin.) Determine how many of each plant stands Nate needs to sell to breakeven Breakeven sales of twig stands is units Breakeven sales of oak stands is units. Breakeven sales in units tselling scarves at local crafts shows, so ands to sell at the shows. Nate makes The twig stands are more p one oak stand. Ramona ch Data table - Twig Stands Oak Stands Sales price $ Variable cost 69 69 17.00 $ 45.00 $ 3.50 $ 14.00 Print Done te the breakeven sales in units. (Abbreviations used: Avg. average and CM = contri = Breakeven sales in stands Nate needs to sell to breakeven. units. units. 230 D ity A C