Mane Street normally sells 3000 economy-size bottles of shampoo for \(\$ 10\) per bottle. The cost to manufacture the shampoo is \(\$ 5.00\) per bottle. Further variable processing costs of \(\$ 4.00\) per bottle for the shampoo would convert it into a shampoo-conditioner, which Mane Street could sell for \(\$ 16\) per bottle. Variable selling costs are \(\$ 1\) per bottle for the shampoo, but for the shampoo-conditioner they would be \(\$ 2.50\) per unit.

Required:

Based on this information and assuming that Mane Street can sell 3000 bottles of shampooconditioner, prepare an analysis to answer each of the following questions.

a Should Mane Street process the shampoo further into a shampoo-conditioner?

b If the selling price per unit of the shampoo-conditioner dropped to \(\$ 15\) per bottle, should Mane Street process the shampoo further into a shampoo-conditioner?