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E8-47B Sell as is or process further (Learning Objective 7) OrganicPlus processes organic milk into plain yogurt. OrganicPlus sells plain yogurt to hospitals, nursing homes,

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E8-47B Sell as is or process further (Learning Objective 7) OrganicPlus processes organic milk into plain yogurt. OrganicPlus sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $830, yields 750 gallons of plain yogurt. OrganicPlus sells the one-gallon tubs for $6.00 each and spends $0.10 for each plastic tub. Management has recently begun to reconsider its strategy. OrganicPlus wonders if it would be more profitable to sell individual-sized portions of fruited organic yogurt at local food stores. OrganicPlus could further process each batch of plain yogurt into 16,000 individual por- tions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. OrganicPlus would sell each individual portion for $0.40. Packaging would cost $0.07 per portion, and fruit would cost $0.12 per portion. Fixed costs would not change. Should OrganicPlus continue to sell only the gallon-sized plain yogurt (sell as is) or convert the plain yogurt into individual-sized portions of fruited yogurt (process further)? Why

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