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Organicplus processes organic mik into plain yogurt. Organicplus sells plain yogurt to hospitais, nursing homes, and resiaurants in buk, one-gallon contairers. Each batch, processed at
Organicplus processes organic mik into plain yogurt. Organicplus sells plain yogurt to hospitais, nursing homes, and resiaurants in buk, one-gallon contairers. Each batch, processed at a cost of $800, yields 630 galions of plain yogurt. The company sells the one-gallon fubs for $7.00 each and spends $0,14 for each plastic tub Organicplus has recently begun to reconsider its strategy. Management wonders if it would be more profitable to sell individualsized porions of fruied crpanic yogurt at local food stores, Organicplus could further process each batch of plain yogurt into 13.440 individual portions (3/4 cup each) of frutod yogart. A recent macket analysis indicates that demand for the product exists. Organicplus would sell each individual portion for $0.44. Packaging would sost $0 cos per poricn, and fruit would cost S0.09 per portion. Fixed costs would not change. Should Organicplus continue to sell only the galion-sized plain yogurt (sell as is) or convert the plain yogut into individual-sized portions of Pruited yogurt (process further)? Why? Calculate the net benefit per batch under each altemative. (Enter a " 0 . for any zero amounts, Round the net benefit per batch to the nearect whele dclar.)
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