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Best Dairy processes organic milk into plain yogurt, Best Dairy sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers, Each batch,

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Best Dairy processes organic milk into plain yogurt, Best Dairy sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers, Each batch, processed at a cost of $800, yields 585 gallons of plain yogurt. The company sells the onegallon tubs for $6.00 each and spends $0.14 for each plastic tub. Best Dairy has recently begun to reconsider its strategy. Management wonders if it would be more protable to sell individual-sized portions of fruited organic yogurt at local food stores. Best Dairy could further process each batch of plain yogurt into 12,480 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Best Dairy would sell each individual portion for $0.40. Packaging would cost $0.08 per portion, and fruit would cost $0.09 per portion. Fixed costs would not change. Should Best Dairy 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 iurlher)? Why? Calculate the net benet per batch under each alternative. (Enter a "0" for any zero amounts. Round the net benet per batch to the nearest whole dollar.) Sell as gallon-size Sell as individual containers portions Less: Net benet per unit x x Net benet per batch Choose from any list or enter any number in the input fields and then click Check

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