M & Z Creameries, Corp. process milk and sugar to make vanilla ice cream. They sell their ice cream in large one-gallon containers to schools, hospitals, nursing homes, and restaurants. Each batch produces 1,780 gallons of ice cream at a cost of $740 per batch. M&Z Creameries, Corp. sells the one-gallon containers for $26.00 each and spends $0.15 for each plastic container. M&Z Creameries, Corp. has started to determine the feasibility of adding chocolate and strawberries and sell pint-size portions at local supermarkets. Further processing of each batch of ice cream could produce 25,800 pint-sized portions. A recent market study determined a demand existed for this type of product. M & Z Creameries, Corp. could sell each pint-sized portion for $2.80. Additional packaging would cost $0.70 per pint, and the additional materials would cost $0.35 per pint. There would be no change in fixed costs. Should they continue to sell only one-gallon size containers of vanilla ice cream or convert it into chocolate and strawberry pint sized ice cream? Sell As Is Process Further Difference M & Z Creameries, Corp. Expected Revenue selling As Is Expected Revenue selling Processed further Additional Revenue (Process further - As is) Variable cost of selling As Is Variable cost of selling Processed further Additional Costs (Process further. As is) Total Net Revenue