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= Homework: Chapter 8 Homework Question 6, E8-31A (simi... Part 1 of 2 HW Score: 58.33%, 3.5 of 6 points O Points: 0 of 1
= Homework: Chapter 8 Homework Question 6, E8-31A (simi... Part 1 of 2 HW Score: 58.33%, 3.5 of 6 points O Points: 0 of 1 Save Naturalmaid processes organic milk into plain yogurt. Naturalmaid sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $880, yields 615 gallons of plain yogurt. The company sells the one-gallon tubs for $8.00 each and spends $0.12 for each plastic tub. Naturalmaid has recently begun to reconsider i strategy. Management wonders if it would be more profitable to sell individual-sized portions of fruited organic yogurt at local food stores. Naturalmaid could further process each batch of pl yogurt into 13,120 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Naturalmaid would sell each individual portion fo $0.48. Packaging would cost $0.05 per portion, and fruit would cost $0.10 per portion. Fixed costs would not change. Should Naturalmaid 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 gallon-size Sell as individual containers portions Less: Net benefit per unit Net benefit per batch
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