Business, 26.09.2019 18:00 priceisright11401

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 $ 820, yields 615 gallons of plain yogurt. the company sells the one-gallon tubs for $ 6.00 each and spends $ 0.12 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 comma 120 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 $ 0.54. 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?

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Processes organic milk into plain yogurt. organicmaid sells plain yogurt to hospitals, nursing homes...

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