Suite Sixteen Makeup produces facial moisturizer. Each bottle of moisturizer costs $10 to produce and can be sold for $13. The bottles can be sold as is or processed further into sunscreen at a cost of $14 each. Suite Sixteen Makeup could sell the bottles of sunscreen for $22 each.

Question

Quizplus · Accepted Answer

CThe cost to produce the moisturizer is $10, and it sells for $13, making a profit of $3 per bottle. If processed further into sunscreen, the additional cost is $14, making the total cost $24 ($10 + $14). Selling the sunscreen for $22 results in a loss of $2 per bottle compared to the cost of production. Therefore, processing further increases costs more than revenue and decreases profit by $2 each.

Suite Sixteen Makeup Produces Facial Moisturizer