Answered step by step
Verified Expert Solution
Question
1 Approved Answer
E Homework: Chapter M:8 Homework Question 6, EM8-20 (sim... Part 1 of 2 HW Score: 0%, 0 of 6 points O Points: 0 of 1
E Homework: Chapter M:8 Homework Question 6, EM8-20 (sim... Part 1 of 2 HW Score: 0%, 0 of 6 points O Points: 0 of 1 Save Dalryfood processes organic milk into plain yogurt. (Click the icon to view additional information.) Should Dairyfood continue to sell only the gallon-size plain yogurt (sell as is) or convert the plain yogurt into individual-size portions of fruited yogurt (process furthery? Why? (Use a minus sign or parentheses for amounts that are typically shown enclosed in parentheses in a sell or process further decision.) Costs Sell As Is Process Further Difference - X More info Expected revenue from selling by the gallon Expected revenue from selling individual portions Additional costs of selling as is by the gallon Additional costs of processing individual portions Total net revenue Dairyfood sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $810. yields 600 gallons of plain yogurt. Dairyfood sells the one-gallon tubs for $4 each, and spends 50.14 for each plastic tub. Dairyfood has recently begun to reconsider its strategy. Dairyfood wonders if it would be more profitable to sell individual-size portions of fruited organic yogurt at local food stores. Dairyfood could further process each batch of plain yogurt into 12,800 individual portions (3/4 cup cach) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Dairyfood would sell each individual portion for $0.46. Packaging would cost $0.08 per portion, and fruit would cost $0.11 per portion. Fixed costs would not change. ( Print Done Help me solve this Etext pages Get more help Clear all Check
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started