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( Click the icon to view additional information. ) Should Naturalfood continue to sell only the gallon - size plain yogurt ( sell as is
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Should Naturalfood continue to sell only the gallonsize plain yogurt sell as is or convert the plain yogurt into individualsize portions of fruited yogurt process further Why? Use a minus sign or
parentheses for amounts that are typically shown enclosed in parentheses in a sell or process further decision.
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Naturalfood 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. Naturalfood sells the onegallon tubs for $ each, and
spends $ for each plastic tub. Naturalfood has recently begun to reconsider its
strategy. Naturalfood wonders if it would be more profitable to sell individualsize
portions of fruited organic yogurt at local food stores. Naturalfood 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. Naturalfood would sell each individual portion for $ Packaging would
cost $ per portion, and fruit would cost $ per portion. Fixed costs would
not change.
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