Wholesome Dairy processes milk. The cost of the milk processing is $1,270,000. Wholesome is looking to increase its net income and is exploring the possibility of expanding its products to include cream and/or ice cream. It takes 1 gallon of milk to make a half gallon of ice cream.

1. How many half gallons of ice cream can Wholesome make?

2. What are the additional processing costs to convert the milk to ice cream?

3. Should Wholesome sell the milk or process it further and sell ice cream?

Wholesome Dairy processes milk. The cost of the milk processing is $1,270,000. Wholesome is looking to increase its net income and is exploring the possibility of expanding its products to include cream and/or ice cream. It takes 1 gallon of milk to make a half gallon of ice cream points Additional Processing costs Product Milk Ice Cream Units Produced 762,000 gallons ? Selling Price $2.99 per gallon 6.03 per half gallon $ 0.22 per half gallon eBook Required: 1. How many half gallons of ice cream can Wholesome make? 2. What are the additional processing costs to convert the milk to ice cream? 3. Should Wholesome sell the milk or process it further and sell ice cream? Print References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How many half gallons of ice cream can Wholesome make? Number of half gallons of ice cream of ice cream Required 1 Required 2 >