What do the multi colored scissors do?

They divide an item into the two previous products that you merged to make that item. So if you have a jewellery crown but you receive an order for a Lapis necklace you could use the scissors to split the crown back into 2 Lapis necklaces.

That is not the best example because it is a free producer and you should just fulfil that order once you have more necklaces but I don’t know which level you are on to give you a relevant example. Use it on items which you would have to pay for especially ones that are more difficult to get.