Alternate problem E Cool-Snacks Company produces and sells ice cream for ice cream shops. Management is considering purchasing better ingredients. The variable cost of producing a gallon of ice cream is as follows: Materials (cream, containers, etc.) $1.40 Inspection and replacement costs .40 All other variable costs .70 Total variable cost per gallon $2.50 In addition, the company has $1,00o,0o0 of fixed costs per year. The company inspects the product at various stages. The cost of inspecting the product and replacing Y ice cream averages $o.40 per gallon, shown as the inspection and replacement costs. Management is high-quality ingredients, in particular, high-quality dairy products. These high- quality ingredients would increase materials costs to $1.80 per and replacement costs to $o.30 per gallon. All other costs would remain at $o.7o per gallon for variable costs and $1,000,000 for fixed costs whether or not the high-quality ingredients are purchased. If the high-quality ingredients are purchased, the company expects to sell 1,200,o00 gallons of ice cream this year at $4 per gallon. If the company continues to use the current low-quality ingredients, the company expects to sell 1,000,0oo gallons of ice cream at $3.50 per gallon. Should Cool-Snacks Company buy the high- quality ingredients for its ice cream? would decrease inspection