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Rachel Rey recently opened her own basketweaving studio. She sells finished baskets in addition to the raw materials needed by customers to weave baskets of

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Rachel Rey 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. Rachel has put together a variety of raw material kits, each induding materials at various stages of completion. Unfortunately, owing to space limitations, Rachel is unable to carry all varieties of lots originally assembled and must choose between two basic packages The basic introductory kit includes undyed, uncut reeds (with dve induded) for weaving one basket. This basic package costs Rachel $14 and sells for $30. The second kit, called Stage 2, indudes cut reeds that have already been dyed, with this for the customer need only soak the reeds and weave the basket. Rachel is able to produce the second lot by using the basic materials included in the first kit and adding one hour of her own time, which she values at $20 per hour. Because she is more efficient at cutting and dying reeds than her average customer, Rachel is able to make two kits of the dyed reeds, in one hour, from one kot of undyed reeds. The Stage 2 kat sells for $35. *a) Your answer is partially correct. Try again Prepare an incremental analysis for the Rachel's basketweaving shop. (Enter negative amounts using either a negative sign preceding the number eg.-4 or parentheses e.g. (45).) Sell Process Further (Basic Kit) (Two Stage 2 Kits) Net Income Increase (Decrease) Sales per unit Costs per unit Direct materials Direct labor Total Net income per unit Attemptst 1 of 2 used

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