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Naturalmaid processes organic mik into plain yogurt Click the loon to view additional information Should Naturalmaid continue to sell only the gation size plain yogurt

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Naturalmaid processes organic mik into plain yogurt Click the loon to view additional information Should Naturalmaid continue to sell only the gation size plain yogurt sell as is) or convert the plain yogurt into individual site portion of red yogurt (processer Wilhelm ore typically shown enclosed in partes in a sell or process further decision Sell Asis Process Further Diference Costs Expected revenue from selling by the gallon Expected revenue from selling individual portions Additional costs of selling as is by the gallon Additional costs of processing individual portions Total net revenue Process Further Costs Sell As Is Difference Expected revenue from selling by the gallon Expected revenue from selling individual portions Additional costs of selling as is by the gallon Additional costs of processing individual portions Total net revenue More Info Naturalmaid sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $820, yields 1,200 gallons of plain yogurt. Naturalmaid sells the one-gallon tubs for $6 each, and spends $0.20 for each plastic tub. Naturalmaid has recently begun to reconsider its strategy. Naturalmaid wonders if it would be more profitable to sell individual-size portions of fruited organic yogurt at local food stores. Naturalmaid 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. Naturalmaid would sell each individual portion for $0.60. Packaging would cost $0.10 per portion, and fruit would cost $0.09 per portion. Fixed costs would not change. Print Done Get More Help

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