he decided to make two types of plant stands to sell at the shows. Curtis makes

Question

he decided to make two types of plant stands to sell at the shows. Curtis makes oak stand Susie charges her husband $360 to share her booth at the craft shows twig stands out of downed wood from his backyard and the yards of his neighbors, (after all, she has paid the entrance fees). How many of each plant stand does so his variable cost is minimal (wood screws, glue, and so forth) However, Curtis Curtis need to sell to breakeven? has to purchase wood to make his oak plant stands. His unit prices and costs are needs to sell to breakeven? Explain so The twig s as follows EEB (Click the icon to view the data.) Will this affect the number of scarves Susie Determine how many of each plant stand Curtis needs to sell to breakeven. Begin by computing the weighted-average contribution margin per unit. First identify the labels, then complete the calculations step by step. Twig Oak Total Less: Choose from any list or enter any number in the input flelds and then continue to the next question

Explanation / Answer

Weighted-Average contribution margin per unit: Twig Oak Total a) Sales price 18 38 b) Variable cost 3 8 c) Contribution (a)-(b) 15 30 d) Weight 4 1 e) Weighted average contribution 12 3 15 (15*4/5) (15*1/5) Brak even sales in units=Fixed cost/Weighted average contribution margin per unit=360/15=24 units Twig need to sell to break-even=24*4/5=19.2=19 units Oak need to sell to break-even=24*1/5=19.2=4.8=5 units By charging her husband a part of the craft fair entrance fees, Her fixed cost will Decrease.Therefore, Susie will need to sell Less number of scarves to breakeven than before her husband decided to share her craft booths

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