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Vaughn Garden recently opened her own basketweaving studio. She sells finished baskets in addition to selling the raw materials needed by customers to weave baskets
Vaughn Garden recently opened her own basketweaving studio. She sells finished baskets in addition to selling the raw materials needed by customers to weave baskets of their own. Unfortunately, owing to space limitations, Vaughn is unable to carry all varieties of kits originally assembled and must choose between two basic packages. The Basic Kit includes undyed, uncut reeds (with dye included) for weaving one basket. This basic package costs Vaughn $8 and sells for $22. The second kit, called Stage 2, includes cut reeds that have already been dyed. With this kit the customer need only soak the reeds and weave the basket. Vaughn produces the Stage 2 kit by using the materials included in the Basic Kit. Because she is more efficient at cutting and dying reeds than her average customer, Vaughn is able to produce two Stage 2 kits in one hour from one Basic Kit. (She values her time at $26 per hour.) The Stage 2 kit sells for $36. (a 1) Your answer is partially correct. Prepare an incremental analysis for the Vaughn's basketweaving studio. (Enter negative amounts using either a negative sign nomading the numbereq -45 or parentheses e.g. (45). (Two Stage 2 (Basic Kit) 14 $ 36 22 $ Sales per unit Costs per unit $ 8 8 Direct materials -26 26 0 Direct labor -34 $ 8 Total Me - 12 $ 2 $ 14 Net income per unit (a2) The parts of this question must be completed in order. This part will be available when you complete the part above
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