Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

View Policies Current Attempt In Progress Lisa Anderson recently opened her own basket -weaving studio She sells finished baskets In addition to the raw materials

image text in transcribed
image text in transcribed
View Policies Current Attempt In Progress Lisa Anderson 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 Lisa has put together a variety of raw material kits, with each kit including materials at various stages of completion. Unfortunately, because of space limitations Lisa 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 Usa $13 and sells for $30. The second it 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 sile preceding the number 03-15,000 or porethesks os (15,0001) Sell Basic Process Further Stage 2 Kit Net Income Increase (Decrease) Per unit selling price $ $ Costs Merals Labour Total costs Incremental revenue Determine whether tha's basket weaving shop should carry the bank introductory kit with undyed and uncut reeds or the Stage 2 kit with reeds already dyed and cut Like's basket-weaving vodio carry the Stage 2 Mitt e Textbook and Media Attempts of used Question 4 of 6 0.5/1 On January 2 2021. Smeet Acacia Hospital purchased a 596.000 special radiology scanner trom Clinton Inc. The scanner has a unetul We of five years and will have no disposal value at the end of its useful lite. The straight-line method of depreciation is used on this scanner. Annual operating costs with this scanner are $105.300 Approximately one year later, the hospital is approached by Shamrock Technology salesperson Michelle Walker, who indicates that purchasing the scanner in 2021 from Clinton was a mistake. She points out that Shamrock has a scanner that will save Sweet Acacia Hospital $26,100 a year in operating expenses over its four-year neful life. She notes that the new scanner will cost $119,900 and has the same capabilities as the scanner purchased last year. The hospital agrees that both scamers are of equal quality. The new scanner will have no disposal value Shamrock agrees to buy the old scanner from Sweet Acacia Hospital for $60.100 (a) Your answer is correct Assume Sweet Acacia Hospital sells its old scanner on January 2, 2022. Cakulate the pain or loss on the sale. Sweet Acacia Hospital sells its old scanner it incursa boss of $ 16700 e Textbook and Media Attempts: 1 of 3 used (b) Using incremental analysis, determine whether Sweet Acacia Hospital should purchase the new scanner onary2.2022. an amount reduces the net income the enter with the spreading theme -15.000 or parties (15.000 Retain Scanner Replace Scanner Net Income Increase (Decres Operating cost $ Newswer cost Old scanner sage Total Sweet Acacia Hotell purchase the new Scanner

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Salvation Audit

Authors: Colin Grant

74th Edition

094086634X, 978-0940866348

More Books

Students also viewed these Accounting questions