Sebastien Quigg admired his wife’s success at selling scarves at local craft shows (E7-49B), so he decided to make two types of plant stands to sell at the shows. Sebastien makes twig stands from twigs he collects in the neighbourhood, so his variable cost is minimal (wood screws, glue, and so forth). However, Sebastien 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 Sebastien sells four twig stands for every one oak stand. Michele charges her husband $455 to share her booths at the craft shows (after all, she has paid the entrance fees). How many of each plant stand does Sebastien need to sell to break even? Will this affect the number of scarves Michele needs to sell to break even? Explain.

  • CreatedApril 30, 2015
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