Organicmaid processes organic milk into plain yogurt.

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Should Organicmaid continue to sell only the gallon$-$size plain yogurt $($sell as is$)$ or convert the plain yogurt

into individual$-$size portions of fruited yogurt $($process further$)?$ Why? $($Use a minus sign or parentheses for amounts that

are typically shown enclosed in parentheses in a sell or process further decision.$)$

Expected revenue from selling by the gallon

Expected revenue from selling individual portions

Additional costs of selling as is by the gallon

Organicmaid sells plain yogurt to hospitals, nursing homes, and restaurants

in bulk, one$-$gallon containers. Each batch, processed at a cost of $$890,$ yields $150$

gallons of plain yogurt. Organicmaid sells the one$-$gallon tubs for $$4$ each, and

spends $$0\mathrm{.}18$ for each plastic tub. Organicmaid has recently begun to reconsider

its strategy. Organicmaid wonders if it would be more profitable to

sell individual$-$size portions of fruited organic yogurt at local food stores.

Organicmaid could further process each batch of plain yogurt into $3,200$ individual

portions $(\frac{3}{4}$ cup each$)$ of fruited yogurt. A recent market analysis indicates that

demand for the product exists. Organicmaid would sell each individual portion for

$$0\mathrm{.}56.$ Packaging would cost $$0\mathrm{.}10$ per portion, and fruit would cost $$0\mathrm{.}09$ per

portion. Fixed costs would not change.