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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 $1280,000 Wholesome is looking to increase

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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 $1280,000 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 Product Milk Ice Cream Units Produced 768,000 gallons Selling Price $ 3.00 per gallon 6.4 per half Ballon Additional Processing costs $ 0.23 per half ellon 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How many half gallons of Ice cream can Wholesome make? Number of hall gallons of ice cream Hequired Required 2 > of ice cream. Additional Process Product Milk Ice Cream Units Produced 768, 000 gallons ? Selling Price $ 3.00 per gallon 6.94 per half gallon $ 0.23 per half ga 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What are the additional processing costs to convert the milk to ice cream? Additional processing cost BLUL Ice Cream 6.04 per half gallon $ 0.23 per 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 crea 3. Should Wholesome sell the milk or process it further and sell ice cream Complete this question by entering your answers in the tabs below- Required 1 Required 2 Required 3 Should Wholesome sell the milk or process it further and sell ice cream? Decision

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