Farm Dairy has a process that results in 1,000 liters of milk that can be sold for $2 per liter and cost per liter is $1 per liter. An alternative would be to process milk further at an additional cost of $2 and then sell it as cream for $5 per liter. Should management sell milk now or should cream be processed further and then sold?

Select one:

a. Sell now; the company will be better off by $3,000.

b. Sell now; the company will be better off by $2,000.

c. Process further; the company will be better off by $3,000.

d. Process further; the company will be better off by $2,000