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I dont understand Dairyplus processes organic milk into plain yogurt. (Click the icon to view additional information.) Should Dairyplus continue to sell only the gallon-size
I dont understand
Dairyplus processes organic milk into plain yogurt. (Click the icon to view additional information.) Should Dairyplus continue to sell only the gallon-size plain yogurt (sell as is) or convert the plain yogurt into individual-size portions of fruited yogurt (process further)? Why? (Use a minus sign or parentheses for amounts that are typically shown enclosed in parentheses in a sell or process further decision.) More info Dairyplus sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $800, yields 1,200 gallons of plain yogurt. Dairyplus sells the one-gallon tubs for $4 each, and spends $0.14 for each plastic tub. Dairyplus has recently begun to reconsider its strategy. Dairyplus wonders if it would be more profitable to sell individual-size portions of fruited organic yogurt at local food stores. Dairyplus could further process each batch of plain yogurt into 25,600 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Dairyplus would sell each individual portion for $0.50. Packaging would cost $0.12 per portion, and fruit would cost $0.11 per portion. Fixed costs would not change
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