Lampara Makeup produces face cream. Each bottle of face cream costs $8 to produce and can...
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Lampara Makeup produces face cream. Each bottle of face cream costs $8 to produce and can be sold for $14. The bottles can be sold as is, or processed further into sunscreen at an additional cost of $16 each. Lampara Makeup could sell the sunscreen bottles for $31 each. Face cream must be processed further because it increases profit by $7 each. Face cream must not be processed further because costs increase more than revenue. O Face cream must be processed further because its profit is $1 each. O Face cream must not be processed further because it decreases profit by $1 each. Lampara Makeup produces face cream. Each bottle of face cream costs $8 to produce and can be sold for $14. The bottles can be sold as is, or processed further into sunscreen at an additional cost of $16 each. Lampara Makeup could sell the sunscreen bottles for $31 each. Face cream must be processed further because it increases profit by $7 each. Face cream must not be processed further because costs increase more than revenue. O Face cream must be processed further because its profit is $1 each. O Face cream must not be processed further because it decreases profit by $1 each.
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The Existing cost 8 and Selling price per unit 14 So Profit ... View the full answer
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