Co M & Z Creameries, Corp. process milk and sugar to make vanilla ice cream. They sell their ice cream in large one-gallon containers to schools, hospitals, nursing homes, and restaurants. Each batch produces 1,540 gallons of ice cream at a cost of $760 per batch. M & Z Creameries, Corp. sells the one-gallon containers for $20.00 each and spends $0.15 for each plastic container. M & Z Creameries, Corp. has started to determine the feasibility of adding chocolate and strawberries and sell pint-size portions at local supermarkets. Further processing of each batch of ice cream could produce 25,800 pint-sized portions. A recent market study determined a demand existed for this type of product. M & Z Creameries, Corp. could sell each pint- sized portion for $2.30. Additional packaging would cost $0.60 per pint, and the additional materials would cost $0.25 per pint. There would be no change in fixed costs. Should they continue to sell only one-gallon size containers of vanilla ice cream or convert it into chocolate and strawberry pint sized ice cream? M & Z Creameries, Corp. Expected Revenue selling As Is Expected Revenue selling Processed further Additional Revenue (Process further - As Is) Variable cost of selling As Is Variable cost of selling Processed further Additional Costs (Process further - As Is) Total Net Revenue Should they process the ice cream further?? Sell As Is Process Further Difference

M \& Z Creameries, Corp. process milk and sugar to make vanilia ice cream. They sell their ice cream in large one-gallon containers to schools, hospitals, nursing homes, and restaurants, Each batch produces 1,540 galions of ice cream at a cost of $760 per batch. M \& Z Creameries, Corp. sells the one-gallon containers for $20.00 each and spends $0.15 for each plastic container. M \& z Creameries, Corp. has started to determine the feasibility of adding chocolate and strawberries and sell pint-size portions at local supermarkets. Further processing of each batch of ice cream could produce 25,800 pint-sized portions. A recent market study determined a demand existed for this type of product. M \& Z Creameries, Corp. could sell each pintsized portion for $2.30. Additional packaging would cost $0.60 per pint, and the additional materials would cost $0.25 per pint, There would be no change in fixed costs. Should they continue to sell only one gallon size containers of vanilla ice cream or convert it into chocolate and strawberry pint sized ice cream? Should they process the ice cream further? M \& Z Creameries, Corp. process milk and sugar to make vanilla ice cream. They sell their ice cream in large one-gallon containers to schools, hospitals, nursing homes, and restaurants. Each batch produces 1,540 gallons of ice cream at a cost of $760 per batch. M \& Z Creameries, Corp. sells the one-gallon containers for $20.00 each and spends $0.15 for each plastic container. M \& Z Creameries, Corp. has started to determine the feasibility of adding chocolate and strawberries and sell pint-size portions at local supermarkets. Further processing of each batch of ice cream could produce 25,800 pint-sized portions. A recent market study determined a demand existed for this type of product. M \& Z Creameries, Corp. could sell each pintsized portion for $2.30. Additional packaging would cost $0.60 per pint, and the additional materials would cost $0.25 per pint. There would be no change in fixed costs. Should they continue to sell only one-gallon size containers of vanilla ice cream or convert it into chocolate and strawberry pint sized ice cream? Should they process the ice cream further