Keep Your Memories manufactures pre-made scrapbook pages for scrapbookers who don't have time to create their...

 

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Keep Your Memories manufactures pre-made scrapbook pages for scrapbookers who don't have time to create their own pages. The clients need only insert their pictures on the pages. It currently sells a child's scrapbook with pre-made pages for $53. Production costs are $23 variable and $13 foxed. The company is considering creating scrapbook kits instead to save labour costs. They are expecting to sell these kits for $45 each and save $9 in variable costs. Prepare an incremental analysis. (If an amount reduces the net income then enter with a negative sign preceding the number eg -45,000 or parenthesis, es (45,000)) Incremental revenue Pre-made pages Kits and costs 24 %$. Should the company begin to sell kits or continue to sell pre made scrapbooks? Keep Your Memories manufactures pre-made scrapbook pages for scrapbookers who don't have time to create their own pages. The clients need only insert their pictures on the pages. It currently sells a child's scrapbook with pre-made pages for $53. Production costs are $23 variable and $13 foxed. The company is considering creating scrapbook kits instead to save labour costs. They are expecting to sell these kits for $45 each and save $9 in variable costs. Prepare an incremental analysis. (If an amount reduces the net income then enter with a negative sign preceding the number eg -45,000 or parenthesis, es (45,000)) Incremental revenue Pre-made pages Kits and costs 24 %$. Should the company begin to sell kits or continue to sell pre made scrapbooks?

Answer rating: 100% (QA)

Incremental analysis Particulars Premade pages Kits Incremental revenues and costs Revenue per unit ... View the full answer