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

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

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