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Britneys Butters receives 2,000,000 containers of raw milk each period that it subsequently processes into consumable milk by adjusting the fat content, adding vitamins, and
Britneys Butters receives 2,000,000 containers of raw milk each period that it subsequently processes into consumable milk by adjusting the fat content, adding vitamins, and destroying any potentially harmful bacteria. For Britneys, one container equals one gallon of consumable milk. Britneys then must decide whether to sell its consumable milk at split-off or to process it further into butter. Britneys normally sells consumable milk for a per-gallon price of $3.50. Alternately, each gallon of milk can be processed further into a tub of butter (all calculations use 1 gallons of milk equals 0.75 gallon of butter) at an additional cost of $3.00 per tub of butter. Also, butter can be sold for $7.00 per tub
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