Dairyland processes organic milk into plain yoghurt dairy land sells plain yoghurt to hospitals nursing homes in restaurants in bulk 4 L containers Each batch processed and a cost of 810 yields 2900 725 4 L containers of plain yoghurt dairy land sells the 4 L tubs for seven dollars each and spends $.10 for each plastic tub Dairyland has recently began to reconsider its strategy to sell individual size portions of fruited organic yoghurt at local food stores Dairyland could further process each batch of plain yogurt into 15,263 individual portions 190 ml each of fruited yogurt. A recent market analysis indicates a demand for the product exists each individual portion would sell for $.46 packaging would cost six cents per portion and fruit would cost $.13 per portion fixed costs would not change should Dairyland continue to sell only 4 L tubs of plain yoghurt or convert the plain yoghurt into individual size portions of fruit and yoghurt

Lite nt) er than to set the demand continues for 4-L containers there is a demand for me individual portion