Fresh Skin Co. produces facial and skincare products. The R&D department has developed two potential new products: one is a new organic chemical compound that aids in the production of collagen, and the other is a plant-based cream that is highly effective in reducing wrinkles. The products are similar enough to be produced on existing equipment, but the company would not be able to produce both of them. Fresh Skin projects the following revenue and cost information for each of the products:
Which product would be most profitable for Fresh Skin to produce?

Question

Fresh Skin Co. produces facial and skincare products. The R&D department has developed two potential new products: one is a new organic chemical compound that aids in the production of collagen, and the other is a plant-based cream that is highly effective in reducing wrinkles. The products are similar enough to be produced on existing equipment, but the company would not be able to produce both of them. Fresh Skin projects the following revenue and cost information for each of the products: 
   Which product would be most profitable for Fresh Skin to produce?

Quizplus · Accepted Answer

The Answer of Fresh Skin Co. produces facial and skincare products. The R&D department has developed two potential new products: one is a new organic chemical compound that aids in the production of collagen, and the other is a plant-based cream that is highly effective in reducing wrinkles. The products are similar enough to be produced on existing equipment, but the company would not be able to produce both of them. Fresh Skin projects the following revenue and cost information for each of the products: 
   Which product would be most profitable for Fresh Skin to produce?