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8-18 please help with whole question. please make sure answer isnt cut off. thank you! Decision: Process Further Costs Sell As Is Difference Expected revenue
8-18
Decision: Process Further Costs Sell As Is Difference Expected revenue from selling by the gallon Expected revenue from selling individual portions Additional costs of selling as is by the gallon Additional costs of processing individual portions Total net revenue More info Dairymaid sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $890, yields 900 gallons of plain yogurt. Dairymaid sells the one-gallon tubs for $5 each, and spends $0.16 for each plastic tub. Dairymaid has recently begun to reconsider its strategy. Dairymaid wonders if it would be more profitable to sell individual-size portions of fruited organic yogurt at local food stores. Dairymaid could further process each batch of plain yogurt into 19,200 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Dairymaid would sell each individual portion for $0.62. Packaging would cost $0.12 per portion, and fruit would cost $0.07 per portion. Fixed costs would not change. Dairymaid processes organic milk into plain yogurt (Click the icon to view additional information) Should Dairymaid continue to sell only the gallon-size plain yogurt (soil as is) or convert the plain yogurt into individual-sue 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) Sell Ass Process Further Difference Costs Expected revenue from selling by the gallon Expected revenue from selling individual portions Additional costs of selling as is by the gallon Additional costs of processing individual portions Total net revenue please help with whole question.
please make sure answer isnt cut off.
thank you!
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