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E7-14 (Algo) Analyzing Sell-or-Process-Further Decision (LO 7-2, 7-6) Wholesome Dairy processes milk. The cost of the milk processing is $1,330,000. Wholesome is looking to increase
E7-14 (Algo) Analyzing Sell-or-Process-Further Decision (LO 7-2, 7-6) Wholesome Dairy processes milk. The cost of the milk processing is $1,330,000. Wholesome is looking to increase its net income and is exploring the possibility of expanding its products to include cream and/or ice cream. It takes 2 gallons of milk to make a half gallon of ice cream. Additional Processing coat Product MILK Ice Cream Units Produced Selling Price 790,000 gallon $3.05 por gallon 6.13 per hale gallon $0.28 per half gallon Required: 1. How many half gallons of ice cream can Wholesome make? 2. What are the additional processing costs to convert the milk to ice cream? 3. Should Wholesome sell the milk or process it further and sell ice cream
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