Question: Current Attempt in Progress Karen White recently opened her own basket - weaving studio. She sells finished baslosts in addition to the raw materials needed
Current Attempt in Progress Karen White recently opened her own basketweaving studio. She sells finished baslosts in addition to the raw materials needed by customers to weave basksts of their own. Karen has put together a variety of raw material kits, with each kit including materials at various stages of completion. Unfortunately, because of space limitations Karen is unable to carry all the varieties of kits she originally assembled and must chocse between two basic packages. The basic introductory kit includes undyed, uncut reeds with dye included for weaving one baskat. This basic package costs Karen $ and sells for $ The second kit, called Stage includes cut reeds that have already been dyed. With this kit, the customer only has to soak the reeds and weave the baskat. Karen is able to produce the second kit by using the basic materials included in the first kit and adding onehalf hour of her own time, which shevalues at $ per hour. The kit of dyed and cut reads sells for $ Prepare an incremental analysis. If an amount reduces the net income then enter with a negative sign preceding the number eg or parenthesis, egSell Basic KitProcess Further Stage KitNet Income Increase Decrease Determine whether Karen's baskatweaving shop should carry the basic introductory kit with undyed and uncut reads or the Stage kit with resds already dyed and cut.
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