Sell of Process Further

produce the milk.

The owners of Rose Hill are deciding whether to sell the dairy cows or expand into the artisan cheese market. Both owners have prior cheese$-$making experience and they already have all the needed equipment.

It takes $0\mathrm{.}8$ gallons of milk to make a pound of cheese. Costs to produce a pound of cheese are expected to total $$7$ per pound. Artisan cheeses are currently selling for $$10$ per pound at farmer's markets and upscale groceries.

Required

a$.$ How much incremental profit would Rose Hill recognize if half the milk each week was used to make cheese?

$$3,937\mathrm{.}5$

b$.$ How much, in total, would Rose Hill earn each week if half the milk was used to make cheese and half was sold to the processor?

Note: Do not round your answers.

$448$

gallons of milk used to make cheese

$1,652$ gallons of milk sold to a processor