Question
The Splendid woods is the most popular carpenters in producing coffee tables for restaurants. It sells two varieties of tables one made of pine
The Splendid woods is the most popular carpenters in producing coffee tables for restaurants. It sells two varieties of tables one made of pine and other of oak. Pine table sells for $35 per table and Oak sells for $30 per table. Fixed costs total $30,000. Additional cost data is given below: Pine Table Oak Table Price per table $35 $30 Unit variable cost $15 $20 Unit contribution margin $20 $10 Sales volume 3,000 1,000 a. What is the WAUCM? b. How many total tables would Splendid need to sell to break even? How many of each Pine and Oak must they sell a year to break even? c. At the current product mix, how many tables in total must The Splendid wood sell in a year in order to earn a profit of $50,000? How many of each, Pine and Oak?
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