Anna Garden recently opened her own basketweaving studio. She sells finished baskets in addition to selling...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Anna 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, Anna 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 Anna $14 and sells for $28. 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. Anna 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, Anna 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 $33. Prepare an incremental analysis for the Anna's basketweaving studio. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).) Net Income Sll Process Further Increase (Basic Kit) (Two Stage 2 Kits) (Decrease) Sales per unit Costs per unit Direct materials $4 Direct labor Total 24 $4 Net income per unit %24 Anna 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, Anna 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 Anna $14 and sells for $28. 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. Anna 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, Anna 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 $33. Prepare an incremental analysis for the Anna's basketweaving studio. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).) Net Income Sll Process Further Increase (Basic Kit) (Two Stage 2 Kits) (Decrease) Sales per unit Costs per unit Direct materials $4 Direct labor Total 24 $4 Net income per unit %24
Expert Answer:
Answer rating: 100% (QA)
Solution INCREMENTAL ANALYSIS Sell Basic Kit Process f... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Posted Date:
Students also viewed these accounting questions
-
Anna Garden recently opened her own basketweaving studio. She sells finished baskets in addition to the raw materials needed by customers to weave baskets of their own. Anna has put together a...
-
Anna Garden 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. Anna has put together a...
-
Anna 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...
-
Why does the magnetization current impose an upper limit on the voltage applied to a transformer core?
-
Develop a seasonally adjusted forecast for the demand data for fertilizer found in Problem 3.Then use a linear trend line model to compute a forecast estimate for demand in year 4.
-
Regional Highway Transport is a large trucking company. Regional Highway Transport uses the units-of-production (UOP) method to depreciate its trucks. In 2013, Regional Highway Transport acquired a...
-
Explain the difference between actual factory overhead and applied factory overhead.
-
AM Express Inc. is considering the purchase of an additional delivery vehicle for $ 55,000 on January 1, 2014. The truck is expected to have a five-year life with an expected residual value of $...
-
Process costing is an effective method to identify resource and logistics costs. Please respond to the following: Discuss the specific steps you would take to design a process costing system that...
-
Compute the mean and median for the duration of hospitalization for the 25 patients? Table 2.13: Hospital-stay data First WBC Received Duration First Received bacterial Sex 1 = M 2 = F (x 10)...
-
Assume that a sample is used to estimate a population proportion p . Find the 98% confidence interval for a sample of size 181 with 92 successes. Enter your answer as an open-interval ( i.e. ,...
-
What are the 5 Cs of storytelling and why are they important to developing messaging?
-
Why is utility relevant in the study of marketing?
-
Define strategic communication?
-
Can you explain how a news release works?
-
How would you define your own leadership style? Do you have examples you can share with others on how you lead when called on?
-
Does Program 32 list local times or UCT? If necessary, modify the program to give the results in local time. Problem 3-2 What happens if you attempt to set a files length to a size larger than the...
-
Prove the formula for (d/dx)(cos-1x) by the same method as for (d/dx)(sin-1x).
-
Edington Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $15 and $25, respectively. Because of the intense competition Edington...
-
Jen Shumway, a fellow student, is unclear about the basic steps in the recording process. Identify and briefly explain the steps in the order in which they occur.
-
(a) What is meant by trading on the equity? (b) How would you determine the profitability of trading on the equity?
-
Possible supply determinants (factors that determine the position of the supply curve) are the _________ prices, the _________ of related goods; _________, the _________ of sellers, and _________.
-
A fall in input prices will _________ the costs of production, causing the supply curve to shift to the _________.
-
The price at the intersection of the market demand curve and the market supply curve is called the _________ price, and the quantity is called the _________ quantity.
Study smarter with the SolutionInn App