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Organicmaid processes organic milk into plain yogurt. ( Click the icon to view additional information ) sell or process further decision. ) table [

Organicmaid processes organic milk into plain yogurt.
(Click the icon to view additional information) sell or process further decision.)
\table[[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]]
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Organicmaid sells plain xegurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $870, yields 750 gallons of plain yogurt: Organicmaid sells the one-gallon tubs for $9 each, and spends $0.14 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 16,000 individual portions (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 $0.46. Packaging would cost $0.12 per portion, and fruit would cost $0.09 per portion. Fixed costs would not change.
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