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All Natural processes organic milk into plain yogurt. All Natural sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one - gallon containers.
All Natural processes organic milk into plain yogurt. All Natural sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, onegallon containers. Each batch, processed at a cost of $ yields gallons of plain yogurt. The company sells the onegallon tubs for $ each and spends $ for each plastic tub. All Natural has recently begun to reconsider its strategy Management wonders if it would be more profitable to sell individualsized portions of fruited organic yogurt at local food stores. All Natural could further process each batch of plain yogurt into individual portions cup each of fruited yogurt. A recent market analysis indicates that demand for the product exists. All Natural would sell each individual portion for $ Packaging would cost $ per portion, and fruit would cost $ per portion. Fixed costs would not change. Should All Natural continue to sell only the gallonsized plain yogurt sell as is or convert the plain yogurt into individualsized portions of fruited yogurt process further Why?
Calculate the net benefit per batch under each alternative. Enter a for any zero amounts. Round the net benefit per batch to the nearest whole dollar.
Sell as gailonsize Sell as individual
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