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Coronado Makeup produces face cream. Each bottle of face cream costs $12 to produce and can be sold for $13. The bottles can be

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Coronado Makeup produces face cream. Each bottle of face cream costs $12 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. Coronado Makeup could sell the sunscreen bottles for $23 each. What should Coronado Makeup do? Face cream must be further processed because it increases operating income by $1 each. Face cream must not be further processed because incremental revenue is less than incremental processing costs. Face cream must be further processed because its operating income is $9 each. Face cream must not be further processed because it decreases operating income by $3 each.

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