Dairyplus processes organic milk into plain yogurt. Dairyplus sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one$-$gallon containers. Data table

$\backslash$table$[[$Month$,,\backslash$table$[[$ufacturing$],[110,000],[$its$]],\backslash$table$[[$Absorption$],[$Costing Per unit$],[$product cost$]],\backslash$table$[[$Variable Costing$],[$Per unit product$],[$cost$]]],[$Direct Materials,$$,1,936,000,,],[$Direct Labor,,$550,000,,],[$Variable MOH,,$110,000,,],[$Fixed MOH,,$302,500.,,],[$Total Cost,$$,2,898,500\_,,]]$

Each batch, processed at a cost of $$830,$ yields $525$ gallons of plain yogurt. The company sells the one$-$gallon tubs for $$6\mathrm{.}00$ each and spends $$0\mathrm{.}10$ for

each plastic tub. Dairyplus has recently begun to reconsider its strategy. Management wonders if it would be more profitable to sell individual$-$sized portions

of fruited organic yogurt at local food stores. Dairyplus could further process each batch of plain yogurt into $11,200$ individual portions $(\frac{3}{4}$ cup each$)$ of

fruited yogurt. A recent market analysis indicates that demand for the product exists. Dairyplus would sell each individual portion for $$0\mathrm{.}48.$ Packaging would

cost $$0\mathrm{.}05$ per portion, and fruit would cost $$0\mathrm{.}09$ per portion. Fixed costs would not change. Should Dairyplus continue to sell only the gallon$-$sized plain

yogurt $($sell as is$)$ or convert the plain yogurt into individual$-$sized portions of fruited yogurt $($process further$)?$ Why?

Calculate the net benefit per batch under each alternative. $($Enter a $"0"$ for any zero amounts. Round the net benefit per batch to the nearest whole dollar.$)$

Sell as gallon$-$size Sell as individual

containers

portions

Less:

Net benefit per unit

Net benefit per batch data table: Month

Total Manufacturing Cost for $110,000$ units

Absorption Costing Per unit product cost

Variable Costing Per unit product cost

Direct Materials

$$1,936,000$

Direct Labor

$550,000$

Variable MOH

$110,000$

Fixed MOH

$302,500$

Total Cost

$$2,898,500$