making sell as is or process further decisions.

Project Description:

naturalmaid processes organic milk into plain yogurt. naturalmaid sells plain yogurt to hospitals, nursing homes and restaurants in bulk, one-gallon containers. each batch, processed at a cost of $800, yeilds 600 gallons of plain yogurt. naturalmaid sells the one-gallon tubs for $7 each and spends $0.16 for each plastic tub. naturalmaid has recently begun to reconsider its strategy. naturalmaid wonders if it would be more profitable to sell individual-size portions of fruited organic yogurt at local food stores. naturalmaid could further process each batch of plain yogurt into 12800 individual potions (3/4 cup each) of fruited yogurt. a recent market analysis indicates that demand for the product exists. naturalmaid would sell each individual portion for $0.54. packaging would cost $0.07 per portion, and fruit would cost $0.11 per portion. fixed costs would not change.

1.should naturalmaid 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?
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Price Type: Negotiable

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