7. Organicmaid processes organic milk into plain yogurt. Organicmaid sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $840, yields 525 gallons of plain yogurt. The company sells the one-gallon tubs for $6.00 each and spends $0.12 for each plastic tub. Organicmaid has recently begun to reconsider its strategy. Management wonders if it would be more profitable to sell individual-sized portions of fruited organic yogurt at local food stores. Organicmaid could further process each batch of plain yogurt into 11,200 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Organicmaid would sell each individual portion for $0.58. Packaging would cost $0.05 per portion, and fruit would cost $0.09 per portion. Fixed costs would not change. Should Organicmaid continue to sell only the gallon-sized plain yogurt (sell as is) or convert the plain yogurt into individual-sized portions of fruited yogurt (process further)? Why? Calculate the net benefit per batch under each alternative. (Enter a "0" for any zero amounts. Round the net benefit per batch to the nearest whole dollar.) Sell as gallon-size Sell as individual containers portions (1) Less: (2) (3) Net benefit per unit (4) Net benefit per batch Based on this analysis, it is more profitable to sell (5) As long as (6) (1) O Number of units produced per year O Sales revenue per unit O Additional processing costs per unit-adding fruit O Additional processing costs per unit-packaging O Contribution margin O Contribution margin per unit O Fixed expenses O Fixed expenses per unit O Number of units produced per batch (2) O Number of units produced per year Sales revenue per unit O Additional processing costs per unit-adding fruit Additional processing costs per unit-packaging O Contribution margin Contribution margin per unit O Fixed expenses O Fixed expenses per unit O Number of units produced per batch (3) O Number of units produced per year O Sales revenue per unit O Additional processing costs per unit-adding fruit O Additional processing costs per unit-packaging O Contribution margin Contribution margin per unit Fixed expenses O Fixed expenses per unit Number of units produced per batch (4) (5) O Number of units produced per year O Sales revenue per unit fruited yogurt as individual portions plain yogurt in bulk gallon containers O Additional processing costs per unit-adding fruit O Additional processing costs per unit-packaging O Contribution margin O Contribution margin per unit O Fixed expenses O Fixed expenses per unit O Number of units produced per batch (6) there is a demand for individual portions the demand continues for bulk gallon containers