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E25-20 (similar to) Question Help o Organicmaid processes organic milk into plain yogurt. (Click the icon to view additional information.) Should Organicmaid continue to sell
E25-20 (similar to) Question Help o Organicmaid processes organic milk into plain yogurt. (Click the icon to view additional information.) Should Organicmaid 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 further)? Why? (Use a minus sign or parentheses for amounts that are typically shown enclosed in parentheses in a sell or process further decision.) Process Further Costs Difference $ Sell As Is 2,250 $ 4,800 $ 2,550 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 2720 1875 1405 2080 Total net revenue More Info Organicmaid sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $800, yields 450 gallons of plain yogurt. Organicmaid sells the one-gallon tubs for $5 each, and spends $0.10 for each plastic tub. Organicmaid has recently begun to reconsider its strategy. Organicmaid wonders if it would be more profitable to sell individual-size portions of fruited organic yogurt at local food stores. Organicmaid could further process each batch of plain yogurt into 9,600 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Organicmaid would sell each individual portion for $0.50. Packaging would cost $0.13 per portion, and fruit would cost $0.07 per portion. Fixed costs would not change. Print Done ial Check
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