Reference no: EM132502810

Happycow processes organic milk into plain yogourt. HappyCowsells plain yogourt to? hospitals, nursing? homes, and restaurants in? bulk, 4-L containers. Each? batch, processed at a cost of $ 800?,yields 2000?(500?4-L) containers of plain yogourt. HappyCowsells the? 4-L tubs for $ 6.00 each and spends $ 0.10for each plastic tub. HappyCowhas recently begun to reconsider its strategy to sell? individual-size portions of fruited organic yogourt at local food stores. HappyCowcould further process each batch of plain yogourt into 10526 individual portions? (190 mL? each) of fruited yogourt. A recent market analysis indicates that demand for the product exists. Each individual portion would sell for $ 0.50.Packaging would cost $ 0.08 per? portion, and fruit would cost $ 0.10 per portion. Fixed costs would not change.

Question 1: Should HappyCow continue to sell only the? 4-L tubs of plain yogourt? (sell as-is) or convert the plain yogourt into? individual-sized portions of fruited yogourt? (process further)?? Why?