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OrganicPlus processes organic milk into plain yogurt. OrganicPlus sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at
OrganicPlus processes organic milk into plain yogurt. OrganicPlus sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $830, yields 750 gallons of plain yogurt. OrganicPlus sells the one-gallon tubs for $6.00 each and spends $0.10 for each plastic tub. Management has recently begun to reconsider its strategy. OrganicPlus wonders if it would be more profitable to sell individual-sized portions of fruited organic yogurt at local food stores. OrganicPlus 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. OrganicPlus would sell each individual portion for $0.40. Packaging would cost $0.07 per portion, and fruit would cost $0.12 per portion. Fixed costs would not change. Should OrganicPlus continue to sell only the gallon-sized plain yogurt (sell as is) or convert the plain yogurt into individual-sized portions of fruited yogurt (process further)? Why? Calculate the net benefit per batch under each alternative. (Enter a " 0 " for any zero amounts. Round the net benefit per batch to the nearest whole dollar.) Brann Products, located in Ann Arbor, Michigan, produces two lines of electric toothbrushes: Deluxe and Standard. Because Brann can sell all the toothbrushes it produces, the owners are expanding the plant. They are deciding which product line to emphasize. To make this decision, they assemble the following data: (Click the icon to view the data.) After expansion, the factory will have a production capacity of 4,000 machine hours per month. The plant can manufacture either 65 Standard electric toothbrushes or 25 Deluxe electric toothbrushes per machine hour. Requirements 1. Identify the constraining factor for Brann Products. 2. Prepare an analysis to show which product line in emnhaeize Requirement 1. Identify the constraining factor for Brann. Brann's constraint is Brann Products, located in Ann Arbor, Michigan, produces two lines of electric toothbrushes: Deluxe and Standard. Because Brann can sell all the toothbrushes After expansion, the factory production capacity of 4,000 month. The plant can manuf Data table
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