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Keep Your Memories manufactures pre-made scrapbook pages for scrapbookers who don't have time to create their own pages. The clients need only insert their pictures

Keep Your Memories manufactures pre-made scrapbook pages for scrapbookers who don't have time to create their own pages. The clients need only insert their pictures on the pages. It currently sells a child's scrapbook with pre-made pages for $53. Production costs are $25 variable and $11 fixed. The company is considering creating scrapbook kits instead to save labour costs. They are expecting to sell these kits for $42 each and save $12 in variable costs. incremental analysis. (If an amount reduces the net income then enter with a negative sign preceding the number e.g. -45,000 or parenthesis, e.g. (45,000).)

Pre-made pages Kits Incremental revenue and costs

Net income / (loss) per unitFixed costs per unitDirect materials per unitVariable costs per unitPurchase price per unitRevenue per unit

$ $ $

Net income / (loss) per unitFixed costs per unitPurchase price per unitRevenue per unitVariable costs per unitDirect materials per unit

Net income / (loss) per unitPurchase price per unitDirect materials per unitVariable costs per unitFixed costs per unitRevenue per unit

Net income / (loss) per unitDirect materials per unitFixed costs per unitRevenue per unitVariable costs per unitPurchase price per unit

$ $ $

Should the company begin to sell kits or continue to sell pre-made scrapbooks? Sell kitsSell pre-made scrapbooks

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