Curtis Walker admired his wife's success at selling scarves at local crafts shows, so he decided...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Curtis Walker admired his wife's success at selling scarves at local crafts shows, so he decided to make two types of plant stands to sell at the shows. Curtis 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, Curtis 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 Curtis sells four twig stands for every one oak stand. Mary charges her husband $350 to share her booth at the craft shows (after all, she has paid the entrance fees). How many of each plant stand does Curtis need to sell t breakeven? Will this affect the number of scarves Mary needs to sell to breakeven? Explain. (Click the icon to view the data.) Determine how many of each plant stand Curtis needs to sell to breakeven. Begin by computing the weighted-average contribution margin per unit. First identify the formula labels, then complete the calculations step by step. Less: Weighted average contribution margin per unit Sales price Variable cost..... Twig Stands 14.00 2.00 Oak Stands $ 40.00 $ 18.00 Curtis Walker admired his wife's success at selling scarves at local crafts shows, so he decided to make two types of plant stands to sell at the shows. Curtis 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, Curtis 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 Curtis sells four twig stands for every one oak stand. Mary charges her husband $350 to share her booth at the craft shows (after all, she has paid the entrance fees). How many of each plant stand does Curtis need to sell t breakeven? Will this affect the number of scarves Mary needs to sell to breakeven? Explain. (Click the icon to view the data.) Determine how many of each plant stand Curtis needs to sell to breakeven. Begin by computing the weighted-average contribution margin per unit. First identify the formula labels, then complete the calculations step by step. Less: Weighted average contribution margin per unit Sales price Variable cost..... Twig Stands 14.00 2.00 Oak Stands $ 40.00 $ 18.00
Expert Answer:
Answer rating: 100% (QA)
Solution Computation of weighted average contribution mar... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Curtis Walker 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. Curtis makes twig stands out of downed wood...
-
Explain how to calculate a weighted average contribution margin per unit.
-
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...
-
Rewe Company's income statement contained the condensed information below. Rewe's balance sheets contained the following comparative data at December 31. Accounts payable pertain to operating...
-
Note disclosures provide the following information: A. Explain the accounting policies that the company is using. B. Provide additional detail for financial statement components. C. Identify major...
-
Your Company paid a $12 per share dividend. The company had earnings per share net income of $900,000; its weighted-average common shares outstanding were 180,000. Its market price per share is $210...
-
Effects of an Unusual Point. You are analyzing a data set of size \(n=100\). You have just performed a regression analysis using one predictor variable and notice that the residual for the 10th...
-
After the tangible assets have been adjusted to current market prices, the capital accounts of Brandon Newman and Latrell Osbourne have balances of $75,000 and $125,000, respectively. Juan Rivas is...
-
4. Istanbul Municipality wants to know if a Flood Control Project is economically feasible. Annual Benefits $1,200,000; Annual Disbenefits $ 200,000; Initial Cost of the Project= $3,000,000 Annual...
-
On January 1, 20X1, Pluto Company acquired all of Saturn Companys common stock for $1,000,000 cash. On that date, Saturn had retained earnings of $200,000 and common stock of $600,000. The book...
-
Suppose that the loan department of a bank takes an average of 3 days to process an application and that an internal audit found that about 100 applications are in various stages of processing at any...
-
A thin plastic rod, of length 4m, lies along the x-axis. It has a charge of -255 nC uniformly distributed over its surface. A thin disk, of radius 7.5 cm, is centered at (5,11,0) cm. It has a uniform...
-
If this had been on Mars the slope would have been 3.7N/kg. What can you determine about the strength of Mars' gravitational field
-
Suppose a satellite is in a low-Earth orbit. Is it possible that the satellite will eventually fall to the ground? Why or why not
-
How much work must be done to boost a 1000 kg communications satellite from a low earth orbit with h = 300 km, where it is released by the space shuttle, to a geosynchronous orbit
-
If an object is dropped, its distance travelled, in meters, after falling for t seconds, is given by 1 2 a t 2 where a is graviational acceleration and equals a = 9.8 meters per second-squared. If an...
-
A patient has requested to receive an electronic copy of her medical record on a USB drive. The practice front office personnel advised the patient that they would provide the copy on one of the...
-
Rowland Textile Inc. manufactures two products: sweatshirts and T-shirts. The manufacturing process involves two activities: cutting and sewing. Expected overhead costs and cost drivers are as...
-
Winter Sports Inc. operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. Investors would like to earn a 15% return on the company's $100...
-
Holiday Industries manufactures a variety of custom products. The company has traditionally used a plant wide manufacturing overhead rate based on machine hours to allocate manufacturing overhead to...
-
A variety of robots were featured at the 2016 National Restaurant Show that could be used for a variety of tasks in restaurants. These robots were introduced at the same time that an ongoing debate...
-
To test \(H_{0}: \sigma=50\) versus \(H_{1}: \sigma <50\), a random sample of size \(n=24\) is obtained from a population that is known to be normally distributed. (a) If the sample standard...
-
(a) Determine the critical values for a right-tailed test of a standard population deviation with 18 degrees of freedom at \(\alpha=0.1\) level of significance. (b) Determine the critical values for...
-
In Example 2 from Section 10.3, the quality-control engineer for M\&MMars tested whether the mean weight of fun-size Snickers was 20.1 grams. Suppose that the standard deviation of the weight of the...
Study smarter with the SolutionInn App