E7-31A (book/static) A Question Help 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: (Click the icon to view the data.) 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 to breakeven? Will this affect the number of scarves Mary needs to sell to breakeven? Explain. 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. Oak Total Twig 14.00 $ 40.00 2.00 18.00 Sale price per unit Less: Variable cost per unit Contribution margin per unit Sales mix Contribution margin 12.00 22.00 5 $ 48.00 $ 22.00 $ 70.00 Weighted average contribution margin per unit 14.00 Next determine the formula to compute the breakeven sales in units. (Abbreviations used: Avg. = average and CM = contribution margin.) Breakeven sales in units Data Table Twig Stands Oak Stands Sales price $ 14.00 $ 40.00 Variable cost 2.00 $ 18.00 Choose from any drop-down list and then click Check Answer. Print Done