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Dairymaid processes organic milk into plain yogurt. Dairymaid sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one - gallon containers. Each batch,

Dairymaid processes organic milk into plain yogurt. Dairymaid sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $830, yields 600 gallons of plain yogurt. Dairymaid sells the one-gallon tubs for $6each, and spends $0.12 for each plastic tub. Dairymaid has recently begun to reconsider its strategy. Dairymaid wonders if it would be more profitable to sell individual-size portions of fruited organic yogurt at local food stores. Dairymaid 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. Dairymaid would sell each individual portion for $0.62. Packaging would cost $0.13 per portion, and fruit would cost $0.15 per portion. Fixed costs would not change. Should Dairymaid continue to sell only the gallon-size plaini yogurt (sell as is) or convert the plain yogurt into individual-size portions of fruited yogurt (process further)? Why?

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