Show transcribed image text Organicmaid processes organic milk into plain yogurt. Organicmaid sells plain yogurt to hospitals nursing homes and restaurants in bulk one-gallon containers. Each batch processed at a cost of $850 yields 630 gallons of plain yogurt. The company sells the one-gallon tubs for $6.00 each and spends $0.16 for each plastic tub. Organicmaid has recently begun to reconsider its strategy. Management wonders if it would be more profitable to sell individual-sized portions of fruited organic yogurt at local food stores. Organicmaid could further process each batch of plain yogurt into 13 440 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Organicmaid would sell each individual portion for $0.52. Packaging would cost $0.05 per portion and fruit would cost $0.11 per portion. Fixed costs would not change. Should Organicmaid continue to sell only the gallon-sized plain yogurt (sell as is) or convert the plain yogurt into individual-sized portions of fruited yogurt (process further)? Why? Calculate the net benefit per batch under each alternative. (Enter a 0 for any zero amounts. Round the net benefit per batch to the nearest whole dollar.)

"Get 15% discount on your first 3 orders with us"
Use the following coupon
FIRST15

Order Now

For order inquiries        1-800-700-6200

Hi there! Click one of our representatives below and we will get back to you as soon as possible.

Chat with us on WhatsApp