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I sell my products for $10. I have three dollars and variable costs. If I process further, the variable costs increase to nine dollars and
I sell my products for $10. I have three dollars and variable costs. If I process further, the variable costs increase to nine dollars and I sell the enhanced product for $12. Should I process further?
Yes, the enhanced product is more profitable
No, the original product had a contribution margin of seven dollars and the new one would have only a contribution margin of three dollars
Yes, $12 is better than $10
Both are equal
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