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Prepare an incremental analysis for the Blossom's basketweaving studio. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45))

Prepare an incremental analysis for the Blossom's basketweaving studio. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45))

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Blossom 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, Blossom is unable to carry all the 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 Blossom $8 and sells for $22. 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. Blossom 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, Blossom 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 $30. (a1) Prepare an incremental analysis for the Blossom's basketweaving studio. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) Sales per unit Costs per unit Direct materials Direct labor Total Net income per unit Sell (Basic Kit) Process Further (Stage 2 Kit) Net Income Increase (Decrease)
Transcribed Image Text:Blossom 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, Blossom is unable to carry all the 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 Blossom $8 and sells for $22. 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. Blossom 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, Blossom 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 $30. (a1) Prepare an incremental analysis for the Blossom's basketweaving studio. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) Sales per unit Costs per unit Direct materials Direct labor Total Net income per unit Sell (Basic Kit) Process Further (Stage 2 Kit) Net Income Increase (Decrease)
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