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HELP Score: 0 of 2 pts 9 of 10 (8 complete) HW Score: 69.4%, 13.88 of 20 pts E8-31A (similar to) Question Help All Natural
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Score: 0 of 2 pts 9 of 10 (8 complete) HW Score: 69.4%, 13.88 of 20 pts E8-31A (similar to) Question Help All Natural processes organic milk into plain yogurt. All Natural sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $810, yields 750 gallons of plain yogurt. The company sells the one-gallon tubs for $8.00 each and spends $0.14 for each plastic tub. All Natural 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. All Natural could further process each batch of plain yogurt into 16,000 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. All Natural would sell each individual portion for $0.40. Packaging would cost $0.05 per portion, and fruit would cost $0.11 per portion. Fixed costs would not change. Should All Natural 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? 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 individual Sell as gallon-size containers portions Less: Net benefit per unit Net benefit per batch Choose from any list or enter any number in the input fields and then click CheckStep by Step Solution
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