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Vaughn Manufacturing produces face cream. Each bottle of face cream costs $7 to produce and can be sold for $11. The bottles can be sold
Vaughn Manufacturing produces face cream. Each bottle of face cream costs $7 to produce and can be sold for $11. The bottles can be sold as is, or processed further into sunscreen with an additional cost of $13 each. Vaughn Manufacturing could sell the sunscreen bottles for $14 each.
| Face cream must be processed further because it increases profit by $4 each. |
| Face cream must be processed further because its profit is $1 each. |
| Face cream must not be processed further because it decreases profit by $6 each. |
| Face cream must not be processed further because costs increase more than revenue. |
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