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Dairyplus processes organic milk into plain yogurt. i (Click the icon to view additional information.) More info x Dairyplus sells plain yogurt to hospitals, nursing
Dairyplus processes organic milk into plain yogurt. i (Click the icon to view additional information.) More info x Dairyplus sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $890, yields 300 gallons of plain yogurt. Dairyplus sells the one-gallon tubs for $8 each, and spends $0.22 for each plastic tub. Dairyplus has recently begun to reconsider its strategy. Dairyplus wonders if it would be more profitable to sell individual-size portions of fruited organic yogurt at local food stores. Dairyplus could further process each batch of plain yogurt into 6,400 individual portions (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 $0.56. Packaging would cost $0.11 per portion, and fruit would cost $0.14 per portion. Fixed costs would not change
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