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 a cost of $14 each. New Age Makeup could sell the sunscreen bottles for $23 each.

Question

Quizplus · Accepted Answer

Processing the face cream into sunscreen increases costs by $14 but only increases revenue by $10, resulting in a net loss of $4 per bottle compared to selling the face cream as is.

New Age Makeup Produces Face Cream