Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help!! Naturalfood processes organic milk into plain yogurt. (Click the icon to view additional information.) Should Naturalfood continue to sell only the gallon-size plain
please help!!
Naturalfood processes organic milk into plain yogurt. (Click the icon to view additional information.) Should Naturalfood 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.) More info Naturalfood sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $800, yields 1,200 gallons of plain yogurt. Naturalfood sells the one-gallon tubs for $6 each, and spends $0.12 for each plastic tub. Naturalfood has recently begun to reconsider its strategy. Naturalfood wonders if it would be more profitable to sell individual-size portions of fruited organic yogurt at local food stores. Naturalfood 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. Naturalfood would sell each individual portion for $0.54. Packaging would cost $0.12 per portion, and fruit would cost $0.07 per portion. Fixed costs would not changeStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started