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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 gallon-size plain yogurt (sell as is) or convert the plain yogurt into individual-size 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,
one-gallon containers. Each batch, processed at a cost of $810, yields 1,050
gallons of plain yogurt. Naturalfood sells the one-gallon tubs for $8 each, and
spends $0.24 for each plastic tub. Naturalfood has recently begun to reconsider its
strategy. Naturalfood wonders if it would be more profitable to sell individual-size
portions of fruited organic yogurt at local food stores. Naturalfood could further
process each batch of plain yogurt into 22,400 individual portions (3/4 cup each) of
fruited yogurt. A recent market analysis indicates that demand for the product
exists. Naturalfood would sell each individual portion for $0.60. Packaging would
cost $0.10 per portion, and fruit would cost $0.08 per portion. Fixed costs would
not change.
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