Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dairyplus processes organic milk into plain yogurt. Dairyplus sols plain yogurt to hospitals, nursing homes, and restaurants in bulk, one galon containers. Each batch, processed

image text in transcribed
Dairyplus processes organic milk into plain yogurt. Dairyplus sols plain yogurt to hospitals, nursing homes, and restaurants in bulk, one galon containers. Each batch, processed at a cost of $10 yields 750 galions of plain yogurt. The company sels the one gallon tubs for $7.00 each and spends $0.16 for each plastic tub. Dairyplus has recently begun to reconsider its strategy Management wonders it would be more profitable to sel individualsed portions of fruited organic yogurt at local food stores. Dairyplus could further process each batch of plain yogurt into 16,000 individual portion (34 cup each of fruited yogurt. A recent market analysis indicates that demand for the product exists. Dairypus would be each individual portion for $0.44. Packaging would cost $0.07 per porton, and fruit would cost $0.12 per portion Fed costs would not change. Should Dairypus continue to sell only the gation sur plain yogurt (ell as is) or convert the plain yogurt into individual-stred portions of fruited yogurt process further? Why? Calculate the nat benefit per batch under och storative. (Enter a "for any zero amounts. Round the net bene per batch to the nearest whole dollar) Sell as galios Sell as individual containers portions Net benefit per un Net boneft per batch

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services With ACL CD

Authors: McGraw Hill

1st Edition

1259071200, 978-1259071201

More Books

Students also viewed these Accounting questions