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PLEASE HELP WITH THIS PROBLEM AND TELL ME IF THE COMPANY SHOULD SELL THE GALLON SIZE PLAIN YOGURT OR CONVERT THE PLAIN YOGURT INTO INDIVIDUAL
PLEASE HELP WITH THIS PROBLEM AND TELL ME IF THE COMPANY SHOULD SELL THE GALLON SIZE PLAIN YOGURT OR CONVERT THE PLAIN YOGURT INTO INDIVIDUAL SIZE PORTIONS OF FRUITED YOGURT? Should Organicfood continue to sell only the gallon-size plain yogurt (sell as is) or convert the plain yogurt into individual slze portions of fruited yogut (process further)? Why? (Use a minus sign on parenthesas for amounts that ars typically shown enclosed in parenthesios in a sell or process further decision) Organicfood sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, prdcessed at a cost of $830, yields 150 gallons of plain yogurt. Organicfood sells the one-gallon tubs for $8 each, and spends \$0.24 for each plastic tub. Organicfood has recently begun to reconsider its strategy. Organicfood wonders if it would be more profitable to sell individual-size portions of fruited organic yogurt at local food stores. Organicfood could further process each batch of plain yogurt into 3,200 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Organicfood would sell each individual portion for $0.52. Packaging would cost $0.12 per portion, and fruit would cost $0.15 per portion. Fixed costs would not change
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