Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Naturalplus processes organic milk into plain yogurt. (Click the icon to view additional information.) Should Naturalplus continue to sell only the gallon-size plain yogurt (sell
Naturalplus processes organic milk into plain yogurt. (Click the icon to view additional information.) Should Naturalplus 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 decion More info Naturalplus sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $810 , yields 450 gallons of plain yogurt. Naturalplus sells the one-gallon tubs for $5 each, and spends $0.16 for each plastic tub. Naturalplus has recently begun to reconsider its strategy. Naturalplus wonders if it would be more profitable to sell individual-size portions of fruited organic yogurt at local food stores. Naturalplus could further process each batch of plain yogurt into 9,600 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Naturalplus would sell each individual portion for $0.48 . Packaging would cost $0.11 per portion, and fruit would cost $0.10 per portion. Fixed costs would not change
Step 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