Anna Garden recently opened her own basketweaving studio. She sells finished baskets in addition to the raw materials needed by customers to weave baskets of their own. Anna has put together a variety of raw material kits, each including materials at various stages of completion. Unfortunately, owing to space limitations, Anna is unable to carry all varieties of kits originally assembled and must choose between two basic packages.

The basic introductory kit includes undyed, uncut reeds (with dye included) for weaving one basket. This basic package costs Anna $8 and sells for $22. The second kit, called Stage 2, includes cut reeds that have already been dyed. With this kit the customer need only soak the reeds and weave the basket. Anna is able to produce the second kit by using the basic materials included in the first kit and adding one hour of her own time, which she values at $26 per hour. Because she is more efficient at cutting and dying reeds than her average customer, Anna is able to make two kits of the dyed reeds, in one hour, from one kit of undyed reeds. The Stage 2 kit sells for $36

Anna Garden recently opened her own basketweaving studio. She sells finished baskets in addition to selling the raw materials needed by customers to weave baskets of their own. Unfortunately, owing to space limitations. Anna is unable to carry all varieties of kits originally assembled and must choose between two basic packages The Basic Kit includes undyed uncut reeds (with dye included) for weaving one basket. This basic package costs Anna $8 and sells for $22. The second kit, called Stage 2, indudes cut reeds that have already been dyed With this kit the customer need only soak the reeds and weave the basket Anna produces the Stage 2 kit by using the materials included in the Basic Kit. Because she is more efficient at cutting and dying reeds than her average customer, Anna is able to produce two Stape 2 kits in one hour from one Basic Kit (She values her time at $26 per hour) The Stape 2 kit sells for $36. (1) Prepare an incremental analysis for the Anna's basketweaving studio (Enter negative amounts usinselber neste sin preceding the number 45 or parentheses (454 Sell (Basic Kit Process Further (Two Stage 2 Kits) Net Income Inone (Decrease S 3 Sale per unit Costs per unit $ Direct materials Direct labor Total $ 5 5 5 $ Notino per unit 5 e Textbook and Media