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Help me with this please! Calculate the net benefit per batch under each alternative. (Enter a 0 for any zero amounts. Round the net benefit
Help me with this please!
Calculate the net benefit per batch under each alternative. (Enter a "0" for any zero amounts. Round the net benefit per batch to the nearest whole dollar.) Sell as gallon-size Sell as individual containers portions Less: Net benefit per unit TUTO Net benefit per batch Choose from any list or enter any number in the input fields and then click Check Answer. Dairyfood processes organic milk into plain yogurt. Dairyfood sells plain yogurt to hospitals, nu estaurants in bulk, one-gallon containers. Each batch, processed at a cost of $870, yields 450 gallons of plain yogurt. The company sells the one-gallon tubs for $6.00 each and spends $0.12 for each plastic tub. Dairyfood 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. Dairyfood could further process each batch of plain yogurt into 9,600 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Dairyfood would sell each individual portion for $0.48. Packaging would cost $0.07 per portion, and fruit would cost $0.11 per portion. Fixed costs would not change. Should Dairyfood 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)? WhyStep by Step Solution
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