New Age Makeup produces face cream Each bottle of face cream
New Age Makeup produces face cream. Each bottle of face cream costs $10 to produce and can be sold for $13. The bottles can be sold as is, or processed further into sunscreen at an additional cost of $14 per unit. New Age Makeup could sell the sunscreen bottles for $23 each.
| A.Face cream must be processed further because it increases profit by $3 per unit. |
Solution
Answer:
option D.Face cream must not be processed further because costs increase more than revenue
Explanation :
Incremental revenue is $10 ($23- $13)
Incremental cost is $14
