All Natural processes organic milk into plain yogurt. All Natural sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $ 860, yields 570 gallons of plain yogurt. The company sells the one-gallon tubs for $ 6.00 each and spends $ 0.12 for each plastic tub. All Natural 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. All Natural could further process each batch of plain yogurt into 12 comma 160 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. All Natural would sell each individual portion for $ 0.54. Packaging would cost $ 0.06 per portion, and fruit would cost $ 0.11 per portion. Fixed costs would not change. Should All Natural 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?

Homework: Chapter 08 Graded Homework Save Score: 0 of 6 pts 5 of 5 (0 complete) HW Score: 0%, 0 of 30 pts E8-31A (similar to) : Question Help All Natural processes organic milk into plain yogurt. All Natural sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $860, yields 570 gallons of plain yogurt. The company sells the one-gallon tubs for $6.00 each and spends $0.12 for each plastic tub. All Natural 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. All Natural could further process each batch of plain yogurt into 12,160 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. All Natural would sell each individual portion for $0.54. Packaging would cost $0.06 per portion, and fruit would cost $0.11 per portion. Fixed costs would not change. Should All Natural 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 "O" for any zero amounts. Round the net benefit per batch to the nearest whole dollar.) Sell as gallon-size containers Sell as individual portions Less: Net benefit per unit Net benefit per batch