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Coronado Industries produces facial moisturizer. Each bottle of moisturizer costs $ 1 5 to produce and can be sold for $ 1 8 . The
Coronado Industries produces facial moisturizer. Each bottle of moisturizer costs $ to produce and can be sold for $ The bottles can be sold as is or processed further into sunscreen at a cost of $ each. Coronado Industries could sell the sunscreen for $ per bottle. What decision should the company make and why?
Moisturizer should be processed into sunscreen because its unit profit it $
Moisturizer should not be processed into sunscreen because unit profit decreases by $
Moisturizer should not be processed into sunscreen because incremental costs exceed incremental revenue.
Moisturizer should be processed into sunscreen because unit profit increases by $
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