Chris DeLozier admired his wife's success at selling scarves at local craft shows (E7-51B), so he decided

Question:

Chris DeLozier admired his wife's success at selling scarves at local craft shows (E7-51B), so he decided to make two types of plant stands to sell at the shows. Chris 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, Chris has to purchase wood to make his oak plant stands. His unit prices and costs are as follows.
_____________________________________Twig Stands _____Oak Stands
Sales price ............................................................ $17.00....................$42.00
Variable cost ......................................................... $ 3.50....................$11.00
The twig stands are more popular, so Chris sells four twig stands for every one oak stand. Debbie charges her husband $255 to share her booths at the craft shows (after all, she has paid the entrance fees). How many of each plant stand does Chris need to sell to break even? Will this affect the number of scarves Debbie needs to sell to breakeven? Explain.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managerial Accounting

ISBN: 978-0134128528

5th edition

Authors: Karen W. Braun, Wendy M. Tietz

Question Posted: