Question

Danny Carter admired his wife’s success at selling scarves at local craft 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:


The twig stands are more popular, so Danny sells four twig stands for every one oak stand. Susie charges her husband $ 300 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.


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  • CreatedAugust 27, 2014
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