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Sheridan Company produces face cream. Each bottle of face cream costs $11 to produce and...

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Accounting

Sheridan Company produces face cream. Each bottle of face cream costs $11 to produce and can be sold for $15. The bottles can be sold as is, or processed further into sunscreen with an additional cost of $16 each. Sheridan Company could sell the sunscreen bottles for $25 each.

a. Face cream must not be processed further because it decreases profit by $2 each.

b. Face cream must be processed further because its profit is $9 each.

c. Face cream must not be processed further because costs increase more than revenue.

d. Face cream must be processed further because it increases profit by $4 each.

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