JohnJohn
BrownBrown
admired his friend
KrisKris
ParkerParkers
success at selling scarves at local crafts shows, so he decided to make two types of plant stands to sell at the shows.
JohnJohn
makes twig stands out of downed wood from his backyard and the yards of his neighbors, so his variable cost is minimalwood screws, glue, and so forth However,
JohnJohn
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
JohnJohn
sells four twig stands for every one oak stand.
KrisKris
charges her friend
$ $
to share her booth at the craft showsafter all, she has paid the entrance fees How many of each plant stand does
JohnJohn
need to sell to break even? Will this affect the number of scarves
KrisKris
needs to sell to break even? Explain.
Question content area bottom
Part
Determine how many of each plant stand
JohnJohn
needs to sell to breakeven. Begin by computing the weightedaverage contribution margin per unit. First identify the formula labels, then complete the calculations step by step.
Less:
Weighted average contribution margin per unit
