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The basic introductory kit includes undyed,uncut reeds (with dye included) for weaving one basket. The basic package costs rachael $14 and sells for $30. 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 dye the basket. rache is able to produce the second kit by using the basic materials included in the first kit and adding one hour of her own time, which she values at $18 per hour. bc she is more efficient at cutting and dying reeds than her average customer, rachael is able to make two kits of the dyed reeds, in one hour, from one kit of undyed reeds. the stage 2 kits sells for $35.

Determine whether rachaels basketweaving shop should carry the basic introductory kit with undyed and uncut reeds or the stage 2 kit with reeds already dyed and cut. prepare an incremental analysis to support your answer.

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  • Category:- Accounting Basics
  • Reference No.:- M9977451

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