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The Dairy Division of Coronado Industries produces and sells milk to outside customers. The operation has the capacity to produce 200000 gallons of milk a

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The Dairy Division of Coronado Industries produces and sells milk to outside customers. The operation has the capacity to produce 200000 gallons of milk a year. Last year's operating results were as follows: Sales (175000) gallons $980000 315000 Variable costs Contribution margin Fixed costs 665000 192500 Net Income 472500 Assume the Yogurt Division wants to purchase 40000 gallons of milk from the Dairy Division. The minimum price that will increase the Dairy Division's profit is O $2.70 per gallon O $4.90 per gallon $3,80 per gallon O $1.80 per gallon

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