Prepare on incremental onolysisfor the decision to process moterioiirther. E1122 (LO 4} Jose Chabot recently opened her own basketweaving studio. She sells nished baskets in addition to the raw materials needed by customers to weave baskets of their own. J o se has put together a variety of raw material kits, with each kit including materials at various stages of completion. Unfortunately, because of space limitations, J ose 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 (\"lth dye included) for weaving one basket. This basic package costs J ose 314 and sells for 330. The second kit, called Stage 2, 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 rst kit and adding one-half hour of her own time, which she values at $18 per hour. The kit of dyed and cut reeds sells for 335. Instructions Determine whether J os e's basketweaving shop should carry the basic introductory kit with undyed and uncut reeds or the Stage 2 kit with reeds already dyed and cut. Prepare an incremental analysis to support your ansuer. Determine whether to sell or process rrtherjoint products. E123 (LO 4] w Bahrat Inc. produces three separate products from a common process costing $100,000. Each of the products can be sold at the splitoff point or can be processed further and then sold for a higher price. The cost and selling price data for a recent period are as follows: Sales Value at Cost to Sales Value after Split-Off Point Process Further Further Processing Product 12 350,000 $100,000 3100,000 Product 14 10,000 30,000 35,000 Product 16 60,000 150,000 220,000 Instructions a. Determine the total net income if all products are sold at the splitoff point. b. Determine the total net income if all products are sold after further processing. c. Using incremental analysis, determine which products should be sold at the splitoff point and which should be processed further. (1. Determine the total net income using the results from part (c) and explain why the net income is different from that determined in part (b)