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Question 6 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
Question 6 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 $57. Production costs are $24 variable and $14 fixed. The company is considering creating scrapbook kits instead to save labour costs. They are expecting to sell these kits for $47 each and save $12 in variable costs. Prepare an 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).) Incremental revenue and costs Kits Pre-made pages Should the company begin to sell kits or continue to sell pre-made scrapbooks
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