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Dairyfood processes organic milk into plain yogurt. (Click the icon to view additional information.) shown enclosed in parentheses in a sell or process further decision.)

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Dairyfood processes organic milk into plain yogurt. (Click the icon to view additional information.) shown enclosed in parentheses in a sell or process further decision.) More info Dairyfood sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $890, yields 600 gallons of plain yogurt. Dairyfood sells the one-gallon tubs for $9 each, and spends $0.16 for each plastic tub. Dairyfood has recently begun to reconsider its strategy. Dairyfood wonders if it would be more profitable to sell individual-size portions of fruited organic yogurt at local food stores. Dairyfood could further process each batch of plain yogurt into 12,800 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Dairyfood would sell each individual portion for $0.48. Packaging would cost $0.10 per portion, and fruit would cost $0.08 per portion. Fixed costs would not change

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