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The basic introductory kit includes undyed, uncut reeds (with dye included) for weaving one basket. This basic package costs Lisa $13 and sells for $30.

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The basic introductory kit includes undyed, uncut reeds (with dye included) for weaving one basket. This basic package costs Lisa $13 and sells for $30. 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. Lisa 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 eg. -15,000 or parenthesis, eg. (15,000)) Process Net Income Sell Further Increase Basic Kit Stage 2 Kit (Decrease) Per unit selling price Costs: Materials O Labour Total costs Incremental revenue

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