Arlan Rhode admired his friend John Parker's success at selling scarves at local crafts shows, so he decided to make two types of plant stands to sell at the shows. Arlan makes twig stands out ofdowned wood from his backyard and the yards of his neighbors, so his variable cost is minimal (wood screws, glue, and so forth). However, Arlan has to purchase wood to make his oak plant stands.His unit prices and costs are as follows:View the data.The twig stands are more popular, so Arlan sells four twig stands for every one oak stand. John charges her friend $490 to share her booth at the craft shows (after all, she has paid theentrance fees). How many of each plant stand does Arlan need to sell to break even? Will this affect the number of scarves John needs to sell to break even? Explain.Determine how many of each plant stand Arlan needs to sell to breakeven. Begin by computing the weighted-average contribution margin per unit. First identify the formula labels, then complete thecalculations step by step.Less:Weighted average contribution margin per unitDataSales price.Variable cost$Twig StandsOak Stands14.00 $32.002.50 $8.00PrintDone-

Break even point :— It is the point of production where total cost is equal to total revenue. At…

Answered: Arlan Rhode admired his friend John…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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