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Sandra Robinson recently opened her own basket - weaving studio. She sells finished baskets in addition to the raw materials needed by customers to weave

Sandra Robinson recently opened her own basket-weaving studio. She sells finished baskets in addition to the raw materials needed by
customers to weave baskets of their own. Sandra has put together a variety of raw material kits, with each kit including materials at
various stages of completion. Unfortunately, because of space limitations, Sandra 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 (with dye included) for weaving one basket. This basic package costs Sandra
$14 and sells for $28. 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. Sandra is able to produce the second kit by using the basic materials included in the first
kit and adding one-half hour of her own time, which she values at $20 per hour. The kit of dyed and cut reeds sells for $35.
Prepare an incremental analysis. (If an amount reduces the net income then enter with a negative sign preceding the number e.g.-15,000 or
parenthesis, e.g.(15,000).)
Costs:
Materials
Labour
Total costs
Incremental revenue
Determine whether Sandra's basket-weaving shop should carry the basic introductory kit with undyed and uncut reeds or the Stage 2
kit with reeds already dyed and cut.
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