$*2$ Parts$*$

Organicmaid Company processes organic milk into plain yogurt.

View the additional information.

Should Organicmaid Company continue to sell only the gallon$-$size plain yogurt $($sell as is$)$ or convert the plain yogurt into individual$-$size portions of fruited yogurt $($process

further$)?$ Why? $($Use a minus sign or parentheses for amounts that are typically shown enclosed in parentheses in a sell or process further decision.$)$

Additional Information

Organicmaid Company sells plain yogurt to hospitals, nursing homes, and

restaurants in bulk, one$-$gallon containers. Each batch, processed at a cost of

$$860,$ yields $450$ gallons of plain yogurt. Organicmaid Company sells

the one$-$gallon tubs for $$10$ each, and spends $$0\mathrm{.}16$ for each plastic tub.

Organicmaid Company has recently begun to reconsider its strategy.

Organicmaid Company wonders if it would be more profitable to sell individual$-$size

portions of fruited organic yogurt at local food stores. Organicmaid Company could

further process each batch of plain yogurt into $9,600$ individual portions $(\frac{3}{4}$

cup each$)$ of fruited yogurt. A recent market analysis indicates that demand for the

product exists. Organicmaid Company would sell each individual portion for $$0\mathrm{.}60.$

Packaging would cost $$0\mathrm{.}05$ per portion, and fruit would cost $$0\mathrm{.}14$ per portion.

Fixed costs would not change.