Reference no: EM132969388

Question - Dairyplus processes organic milk into plain yogurtMore Info Dairyplus sells plain yogurt to? hospitals, nursing? homes, and restaurants in? bulk, one-gallon containers. Each? batch, processed at a cost of $890?, yields 1,050 gallons of plain yogurt. Dairyplus sells the? one-gallon tubs for ?$8 ?each, and spends ?$0.22 for each plastic tub. Dairyplus has recently begun to reconsider its strategy. Dairyplus wonders if it would be more profitable to sell? individual-size portions of fruited organic yogurt at local food stores. Dairyplus could further process each batch of plain yogurt into 22,400 individual portions? (3/4 cup? each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Dairyplus would sell each individual portion for ?$0.46. Packaging would cost $0.15 per? portion, and fruit would cost $0.10 per portion. Fixed costs would not change.

Should Dairyplus 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? decision.)