Natural Foods, Inc. buys strawberries to produce whole natural strawberry jelly. The variable cost of a case of strawberry jelly is: Natural Foods, Inc. Raw Materials (strawberries and jars) $10.00 Inspection $5.00 Other variable costs $6.00 Total variable cost per case $21.00 Additionally, the company has fixed costs per year of $1,030,000. The company inspects the product at various stages. Management is considering purchasing high-quality strawberries. This would increase materials cost to $13 per case, while decreasing inspection costs to $3 per case. All other variable and fixed costs would remain the same whether or not the high-quality strawberries were purchased. Natural Foods, Inc. sells their jelly for $43 per case and sells 82,700 cases per year. If the company switched to the high-quality strawberries they could sell 106,900 cases per year at the same $43 price. Should Natural Foods, Inc. purchase the high-quality strawberries? Current High Quality Sales Variable Costs: Materials Inspections Other Total Variable Costs Contribution Margin Fixed Costs Net Income