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Naturalmaid Compary processes organic mik into plain yogurt. Virw the addisonalinformation: Should Naturaimaid Compary conthue to sell only the galion-sise plain yogurt (soll as is)
Naturalmaid Compary processes organic mik into plain yogurt. Virw the addisonalinformation: Should Naturaimaid Compary conthue to sell only the galion-sise plain yogurt (soll as is) or convert the plain yogurt into individual-size portions of fruted yogurt (process further)? Why? (Use a minus sign or parentheses for amounts that aro typically shown endosed in porentheses in a soll or process further decision.) Additional Information Naturaimaid Company selis plain yogunt to hosptais, nuning homes, and restaurants in bulk, one-galion containers. Each batch, processed at a cost of $870, yieids 1,200 gallons of plain yogurt. Naturaimaid Company sells the one-gation tubs for $5 each, and spends $0.10 for each plastio tub. Naturaimaid Company has recently begun to reconsider its strategy. Naturalmaid Company wonders if it would be more proftable to selt ind vidual-site portions of truited organic yogurt at local food stores. Naturalmaid Company could further process each batch of plain yogurt into 25,600 ind vidual portions (3/4 further process each batch of plain yogurt into 25,600 ind vidual porsons (3) cup each) of fruiled yogurt. A recent market analyais indicates that demand for the product exists. Naturaimaid Company would sell each individual portion for $0.52. Packagng would cost $0.10 per portion, and fruit would cost $0.14 per portion. Fixed costs would not change
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