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Betty Basket recently opened her own basket - weaving studio. She sells finished baskets in addition to the raw materials needed by customers to weave
Betty Basket 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. Betty has put together a variety of raw material kits, with each kit including materials at various stages of completion. Unfortunately, because of space limitations Bettyt is unable to carry all the varieties of kits she originally assembled and must choose between two basic packages.
The basic introductory kit includes undyed, uncut reeds with dye included for weaving one basket.
Data;
The basic package costs Betty $ and sells for $
The second kit, called Stage includes cut reeds that have already been dyed. With this kit, the customer only has to soak the reeds and weave the basket. Jose is able to produce the second kit by using the basic materials included in the first kit and adding onehalf hour of her own time, which she values at $ per hour. The kit of dyed and cut reeds sells for $
What is the incrimental revenue of a Stage Kit?
What is the incremental labor of Stage Kit?
What is net income of Stage Kit?
What is net income of Stage kit?
Which kit should Betty sell?
How much cost will she save with this option per kit
If Betty makes kits; Stage and Stage how much will she make? net income
Answer Options:
$
$
$
$
$
Stage kit
Stage kit
$
$
$
$
$
$
$
$
$
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