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Waterway Makeup produces face cream. Each bottle of face cream costs $ 1 0 to produce and can be sold for $ 1 3 .

Waterway Makeup produces face cream. Each bottle of face cream costs $10 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. Waterway Makeup could sell the sunscreen bottles for $22 each.
What should Waterway Makeup do?
Face cream must not be further processed because it decreases operating income by $2 each.
Face cream must be further processed because it increases operating income by $3 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 $8 each.
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