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Dairyplus processes organic milk into plain yogurt. Dairyplus sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one - gallon containers. Data table
Dairyplus processes organic milk into plain yogurt. Dairyplus sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, onegallon containers. Data table
tableMonthtableufacturingitstableAbsorptionCosting Per unitproduct costtableVariable CostingPer unit productcostDirect Materials,$Direct Labor,,Variable MOH,,Fixed MOH,,Total Cost,$
Each batch, processed at a cost of $ yields gallons of plain yogurt. The company sells the onegallon tubs for $ each and spends $ for
each plastic tub. Dairyplus has recently begun to reconsider its strategy. Management wonders if it would be more profitable to sell individualsized portions
of fruited organic yogurt at local food stores. Dairyplus could further process each batch of plain yogurt into individual portions cup each of
fruited yogurt. A recent market analysis indicates that demand for the product exists. Dairyplus would sell each individual portion for $ Packaging would
cost $ per portion, and fruit would cost $ per portion. Fixed costs would not change. Should Dairyplus continue to sell only the gallonsized plain
yogurt sell as is or convert the plain yogurt into individualsized portions of fruited yogurt process further Why?
Calculate the net benefit per batch under each alternative. Enter a for any zero amounts. Round the net benefit per batch to the nearest whole dollar.
Sell as gallonsize Sell as individual
containers
portions
Less:
Net benefit per unit
Net benefit per batch data table: Month
Total Manufacturing Cost for units
Absorption Costing Per unit product cost
Variable Costing Per unit product cost
Direct Materials
$
Direct Labor
Variable MOH
Fixed MOH
Total Cost
$
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