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Hearty Dairy is trying to decide whether it should sell the milk that it processes as is or further process it into butter. Management has
Hearty Dairy is trying to decide whether it should sell the milk that it processes "as is" or further process it into butter. Management has collected the following data pertaining to milk: A 4-litre container of milk, when further processed, can yield 0.5 kilogram of butter. The cost of further processing is $2.70 per kilogram of butter. One kilogram of butter can be sold at a price of $17.50. Required: Determine the profit per 1/2 kilogram from processing the milk further into butter. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Would you recommend that the milk be sold as it is or processed further? Sold as it is Processed further
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