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HELP Best Dalry processes organic milk into plain yogurt Best Dairy sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one gallon containers
HELP Best Dalry processes organic milk into plain yogurt Best Dairy sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one gallon containers Each batch processed at a cost of $830, yields 645 gallons of plain yogurt. The company sells the one-gallon tubs for $8 00 each and spends 50.12 for each plastic tub Best Dairy has recently begun to reconsider its strategy Management wonders if it would be more profitable to sell individual-sized portions of fruited organic yogurt at local food stores Best Dairy could further process each batch of plain yogurt into 13,760 individual portions (3/4 cup each) of fruited yogurt A recent market analysis indicates that demand for the product exists. Best Dairy would sell each individual portion for $0.40 Packaging would cost $0 67 per portion, and fruit would cost $0 09 per portion. Fixed costs would not change. Should Best Dalry continue to sell only the gallon-sized plain yogurt (soll as is) or convert the plain yogurt into individual-sized portions of fruited yogurt (process further)? Why? pre Calculate the net bene per batch under each alterative (Entora "O" for any zero amounts Round the net benefit per batch to the nearest whole dollar) Sell as gallon-size Sell as individual containers portions 6A Asid ASI Less Net benefit per unit hew Net benefit per batch
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