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httpa/ledugen wleyplus.com/edugon/ti/mainuni Weygandt, Financial Managerial Acco

ID: 2521028 • Letter: H

Question

httpa/ledugen wleyplus.com/edugon/ti/mainuni Weygandt, Financial Managerial Accounting, 2e Exercise 21 -9 (Part Level Submission) Arna Garden recently opened her raw maberial kits, each including materisls at various stages of two basic packnges own basketweaving studio. She sels finished baskets in adition to the row materiab nnded be customers to weave baskets of their own. Anna has put together a varisty of completion, Unfortunstely, ing to space Iimtations, Rena is unable to carry all variebies of kits onginaly assembied and must choose betesen The basic introductory kit includes undyed, uncut reeds (with dye basket. This beai have abready been dve hour of her own tme, which she valces ot $24 per hour. Decause she is more efficent at cuting and dying reeds than her average customer, Anna is able to maks two kits of the dyed reeds, one kit of undyed reeds, The Stage 2 kit sells for $35. d. With this kit the oustomer need only soak the reeds and weave the basket Anns is abie to produoe the second kit by iduded) for neav ng one basket. This beat package costs Ana $14 and sela for 20. The second kt, called Stage 2, indudes ot reeds that r r using the basic materisls included in the frst kit and edding one in one hour, from (al) 2 Your answer is partialy asrect. Try agsin Prepare an inrementai analysa for the Anna's basketheaving studio (Enter negative amounts uning either a negative sign preceding the number e.g. -45 or parentheses eg. (4) (lasik Kit) Process Further (Two Stage 2 Kits) Sales per unit Coets per un Direct maternidls

Explanation / Answer

Sell (Basic Kit) Process Further (Two Stage 2 kits) Income increase (decrease) Sales per unit 20 15 35 Costs per unit Direct materials 14 -7 7 Direct labor 0 12 12 Total 14 5 19 Net Income per unit 6 10 16