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Danny

Parker

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.

Danny

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,

Danny

has to purchase wood to make his oak plant stands. His unit prices and costs are as follows:

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The twig stands are more popular, so

Danny

sells four twig stands for every one oak stand.

Susie

charges her husband

$360

to share her booth at the craft shows (after all, she has paid the entrance fees). How many of each plant stand does

Danny

need to sell to breakeven? Will this affect the number of scarves

Susie

needs to sell to breakeven? Explain.

Determine how many of each plant stand

Danny

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

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