New Age Makeup produces face cream. Each bottle of face cream costs $10 to produ
ID: 2389857 • Letter: N
Question
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 with an additional cost of $14 each. New Age Makeup could sell the sunscreen bottles for $23 each.A Face cream must be processed further because it increases profit by $3 each.
B Face cream must be processed further because its profit is $9 each.
C Face cream must not be processed further because costs increase more than revenue.
D Face cream must not be processed further because it decreases profit by $1 each.
Explanation / Answer
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 with an additional cost of $14 each. New Age Makeup could sell the sunscreen bottles for $23 each.
A Face cream must be processed further because it increases profit by $3 each.
B Face cream must be processed further because its profit is $9 each.
C Face cream must not be processed further because costs increase more than revenue.
D Face cream must not be processed further because it decreases profit by $1 each.