Do H ACG 2071 Fall 2017 jennifer sanchez 11/4/17 12:02 AM Homework: Ch. 9 CVP An

Question

Do H ACG 2071 Fall 2017 jennifer sanchez 11/4/17 12:02 AM Homework: Ch. 9 CVP Analysis Score: 0.36 of 1 p Hw Score: 52.89%, 4.23 of 8 pts E7-28A (similar to EQuestion Help Danny Cobb admired his wife's success at selling scarves at local crafts shows. The twig stands are more popular, so Danny sells four twig stands for every one so he decided to make two types of plant stands to sell at the shows. Danny oak stand. Allison charges her husband $490 to share her booth at the craft makes twig stands out of downed wood from his backyard and the yards of his shows (after all, she has paid the entrance fees). How many of has to purchase wood to make his oak plant stands. His unit Allison needs to sell to breakeven? Explain. each plant stand so his vanable cost is minimal (wood screwsghue, and so forth). does Danny need to sell to breakeven? Will this affect the number of scarves prices and costs are as follows (Click the icon to view the data.) 2.50 8.00 11.50 24.00 Sales mix 24.00' s 70.00 46.00 S 4.00 the sales in units. (Abbreviations used: Avg. = average and CM = contribution margin.) 2 Clear All

Explanation / Answer

Breakeven slaes in units= Fixed costs/ CM per unit
=490/14=35 untis
and the no of units o twig stands and oak stands to be sold is
Twig=(4/5)*35=28 units
Oak=(1/5)*35=7 units

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