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Lenny Arkin admired his wife's success at selling scarves at local crafts shows, so he decided to make two types of plant The twig stands are more popular, so Lenny sells four twig stands for every one oak stand. Susie charges her husband stands to sell at the shows. Lenny makes twig stands out of downed wood from his backyard and the yards of his $255 to share her booth at the craft shows (after all, she has paid the entrance fees). How many of each plant stand neighbors, so his variable cost is minimal (wood screws, glue, and so forth). However, Lenny has to purchase wood to does Lenny need to sell to breakeven? Will this affect the number of scarves Susie needs to sell to breakeven? Explain. make his oak plant stands. His unit prices and costs are as follows: (Click the Icon to view the data.) Determine how many each plant stand Lenny 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 Weighted average contribution margin per unit Twig Stands Oak Stands Sales price ............. 17.00 $ 42.00 Variable cost ..............S 3.50 S 11.00 Next determine the formula to compute the breakeven sales in units. (Abbreviations used: Avg. = average and CM = contribution margin.) + = Breakeven sales in units Print Done Determine how many each plant stands Lenny needs to sell to breakeven. units Breakeven sales of twig stands is Breakeven sales of oak stands is units. Will this affect the number of scarves Susie needs to sell to breakeven? Explain. By charging her husband part of the craft fair entrance fees, her fixed costs will Therefore. Susie will need sell scarves to breakeven than before her husband decided to share her craft booths. Lenny Arkin admired his wife's success at selling scarves at local crafts shows, so he decided to make two types of plant The twig stands are more popular, so Lenny sells four twig stands for every one oak stand. Susie charges her husband stands to sell at the shows. Lenny makes twig stands out of downed wood from his backyard and the yards of his $255 to share her booth at the craft shows (after all, she has paid the entrance fees). How many of each plant stand neighbors, so his variable cost is minimal (wood screws, glue, and so forth). However, Lenny has to purchase wood to does Lenny need to sell to breakeven? Will this affect the number of scarves Susie needs to sell to breakeven? Explain. make his oak plant stands. His unit prices and costs are as follows: (Click the Icon to view the data.) Determine how many each plant stand Lenny 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 Weighted average contribution margin per unit Twig Stands Oak Stands Sales price ............. 17.00 $ 42.00 Variable cost ..............S 3.50 S 11.00 Next determine the formula to compute the breakeven sales in units. (Abbreviations used: Avg. = average and CM = contribution margin.) + = Breakeven sales in units Print Done Determine how many each plant stands Lenny needs to sell to breakeven. units Breakeven sales of twig stands is Breakeven sales of oak stands is units. Will this affect the number of scarves Susie needs to sell to breakeven? Explain. By charging her husband part of the craft fair entrance fees, her fixed costs will Therefore. Susie will need sell scarves to breakeven than before her husband decided to share her craft booths
