1. Sell or process further: Fresh as a Daisy, Inc. manufactures flower pots. It can produce and sell plain, unpainted pots for $25 each and the manufacturing costs incurred for the plain, unpainted pots are as follows:

• Variable manufacturing costs per pot: $8.25
• Fixed manufacturing cost per pot: $2.90
• Variable Selling and admin costs per pot: $1.75
• Fixed Selling and admin costs per pot: $3.60

Fresh as a Daisy can also process these pots further by painting them with special designs for customers. It could sell these painted pots for $35 each. The additional variable manufacturing costs of painting and finishing the pots would be $6.25 per pot and the additional variable selling and admin costs of the painted pots would be $0.40 per pot. Assume there would be no additional fixed manufacturing costs nor any additional fixed selling and administrative costs.