John Anderson admired his wife\'s success at selling scarves at local crafts sho

Question

John Anderson admired his wife's success at selling scarves at local crafts shows, so he The twig stands are more popular, so John sells four twig stands for every one oak stand. decided to make two types of plant stands to sell at the shows. John makes twig stands out Katie charges her husband $360 to share her booth at the craft shows (after all, she has of downed wood from his backyard and the yards of his neighbors, so his variable cost is paid the entrance fees). How many of each plant stand does John need to sell to minimal (wood screws, glue, and so forth). However, John has to purchase wood to make breakeven? Will this affect the number of scarves Katie needs to sell to breakeven? Explain his oak plant stands. His unit prices and costs are as follows: ?(Click the icon to view the data.) Determine how many of each plant stand John 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 Less: Weighted average contribution margin per unit

Explanation / Answer

Total weight: 4+1 =5

Weighted average contribution per unit : [15*4/5]+[30*1/5]

             = 12+ 6

             = $ 18 per unit

2)Break even point =Fixed cost /weighted average contribution per unit

       = 360/18

         = 20

Twig stands : 20*4/5 = 16

Oak stands = 20*1/5 = 4

Twik stands Oak stands selling price 18 38 variable cost (3) (8) contribution margin 15 30 weights of each product [4 twik for every one oak] 4 1

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