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Exercise 20-9 Anna Garden recently opened her own basketweaving studio. She sells finished baskets in addition to the raw materials needed by customers to weave
Exercise 20-9 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 meterials at verious tages of completion. Unfortunately, owing to spoce limitations, Anna is unable to carry all varicties of kits originally assembled and must choose between two basic packages The basic introductory kit includes undyed, uncut rceds (with dye included) for weaving onc basket. This basic package costs Anno $16 and sells for $29. The sccond 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 valucs at $18 per hour. Because she is more efficient at cutting and dying recds than her average customer, Anna is able to make two kits of the dyad roeds, in one hour, from one kit of undyod reeds. The Stage 2 kit sells for $32 Propare an incremental analysis for the Anna's basketweaving studio. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses o.g. (45).) Net Income Sell (Basic Kit) Process Further (Stage 2 Kit) (Decrease) Sales per unit Costs per unit Direct material Direct labor Totel Net income per unit LINK TO TEXT Should Anna's carry the basic introductory kit with undyed and uncut reeds or the Stage 2 kit with reeds already dyed and cut? Anna should carry the Click if you would like to Show Work for this question: LINK TO TEXT Question Attempts: O of 2 used SAVE FOR LATER SUBMIT A NSWER
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