Question

Martin Kittson 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. Martin 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, Martin 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 Martin sells four twig stands for every one oak stand. Gabby charges her husband $ 360 to share her booths at the craft shows (after all, she has paid the entrance fees). How many of each plant stand does Martin need to sell to breakeven? Will this affect the number of scarves Gabby needs to sell to breakeven?Explain.


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  • CreatedAugust 27, 2014
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