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Dairylood processes organic mik into plain yogurt. Dairyfood sels plain yogurt to hosptals, nursing homes, and restaurants in buik, one-gallon containers. Each batch, processed at

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Dairylood processes organic mik into plain yogurt. Dairyfood sels plain yogurt to hosptals, nursing homes, and restaurants in buik, one-gallon containers. Each batch, processed at a cost of $990, yields 675 gallons of plain yogurt. The company sells the one-gallon tubs for $6.00 each and spends $0. 16 for each plastic tub. Dairyfood has recently begun to feconsider its strategy. Management wonders if it woult be more proftabie to sell individusl-sized portions of fruited organic yogurt at local food stores. Dairylood could further process each batch of plain yogurf into 14,400 individual portions (3/4 cup each) of fruited yogurt. A recent market analyes indicates that demand for the product exists Dairylood would sell each individual porton for $0.58. Packeging would cost $0,08 per portion, and fruit would cost $0.11 per portion. Fixed costs would not change. Should Dairyfood continue to set only the gatlon-sized plain yogurt (sell as is) or corrvert the plain yogurt into individual-sized portions of truited yogurt (orocess further)? Why? Caloulate the net beneft per batch under each altemative. (Einter a " 0 " for any zero amounts. Round the net benelit per batch to the nearust whole dollat.)

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