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Dairymaid processes organic milk into plain yogourt. Dairymaid sells plain yogourt to hospitals, nursing homes, and restaurants in bulk, 4 - L containers. Each batch,
Dairymaid processes organic milk into plain yogourt. Dairymaid sells plain yogourt to hospitals, nursing homes, and restaurants in bulk, L containers. Each batch, processed at a cost of $ yields containers of plain yogourt. Dairymaid sells the tubs for $ each and spends $ for each plastic tub. Dairymaid has recently begun to reconsider its strategy to sell individualsize portions of fruited organic yogourt at local food stores. Dairymaid could further process each batch of plain yogourt into individual portions mL each of fruited yogourt. A recent market analysis indicates that demand for the product exists. Each individual portion would sell for $ Packaging would cost $ per portion, and fruit would cost $ per portion. Fixed costs would not change. Should Dairvmaid continue to sell only the L tubs of plain vogourt sell asis or convert the plain vogourt into individualsized portions of fruited vogourt process further per batch to the nearest whole dollar.
tabletableSell as L sizecontainerstableSell as individualportionsNet benefit per unit,,Net benefit per batch,,
Should Dairymaid continue to sell only the L tubs of plain yogourt sell asis or convert the plain yogourt into individualsized portions of fruited yogourt process further Why?
A Based on this analysis, it is more profitable to sell fruited yogourt as individual portions. This is true as long as there is a demand for individual portions.
B Based on this analysis, it is more profitable to sell plain yogourt in bulk L containers. This is true as long as there is a demand for individual portions.
C Based on this analysis, it is more profitable to sell fruited yogourt as individual portions. This is true as long as the demand continues for bulk containers.
D Based on this analysis, it is more profitable to sell plain yogourt in bulk L containers. This is true as long as the demand continues for bulk containers.
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