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More info Naturalfood sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $820,
More info Naturalfood sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $820, yields 150 gallons of plain yogurt. Naturalfood sells the one-gallon tubs for $4 each, and spends $0.14 for each plastic tub. Naturalfood has recently begun to reconsider its strategy. Naturalfood wonders if it would be more profitable to sell individual-size portions of fruited organic yogurt at local food stores. Naturalfood could further process each batch of plain yogurt into 3,200 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Naturalfood would sell each individual portion for $0.46. Packaging would cost $0.05 per portion, and fruit would cost $0.08 per portion. Fixed costs would not change. Print Done -
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