Structuring the Sell-or-Process-Further Decision Bart's Butters receives 1,000,000 containers of raw milk each period that it subsequently processes into consumable milk by adjusting the at content, adding vitamins, and destroying any potentally harmful bacteria. For Bart's, one container equals one allon of consumable milk. Bart's then must decide whether to sell is consumable milk at split-off or to process it further into consumable milk for a per-gallon price of $3. Alternately, each gallon of milk can be gallon of milk equals 0.5 gallon of butter) at an additional cost of $1.50 per tub of butter. Also, butter can be sold for $6.00 per tub. Required: 1. What is the contribution to income from selling the consumable milk? processed further into one-half tub of butter (i.e., one 2. What is the contribution to income from processing the consumable milk into butter? 3. Should Bart's continue to sell the consumable milk or process it further into butter? Process the consumable milk into butter Sell the consumable milk without processing Calculating a Target Cost Sisters, Inc. manufactures professional-level printers that perform multiple features, such as high-resolution color scannin faxing, and copying. The new printer model has a target price of $600. Management requires a 20% profit on new product revenues. Required 1. Calculate the amount of desired profit. g, printing, 2. Calculate the target cost