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Waterway Garden recently opened her own basketweaving studio. She sells finished baskets in addition to seling the raw materials needed by customers to weave Baskets

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Waterway Garden recently opened her own basketweaving studio. She sells finished baskets in addition to seling the raw materials needed by customers to weave Baskets of their own. Unfortunately, owing to space limitations, Waterway is unable to carry all varieties of kits originally assembled and must choose between two basi packages. The Basic Kit includes undyed, uncut reeds (with dye included) for weaving one basket. This basic package costs Waterway $14 and sells for $26. The second it 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. Waterway 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, Waterway is able to produce two Stage 2 kits in one hour from one Basic Kit. (She values her time at $18 per hour.) The Stage 2 kit sells for $31. Prepare an incremental analysis for the Waterway's basketweaving studio. (Enter negative amounts using either a negative sin preceding the number 5-45 or parentheses eg.(451) Sell (Basic Kit) Process Further (Two Stage 2 Kits) Net Income Increase (Decrease) Sales per unit Costs per unit Direct materials Direct labor Total Net Income per unit

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