Natural-Maid processes organic milk into plain yogurt. Natural-Maid sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $840, yields 300 gallons of plain yogurt. Natural-Maid sells the one-gallon tubs for $5 each and spends $0.14 for each plastic tub. Natural- Maid has recently begun to reconsider its strategy. Natural-Maid wonders if it would be more profitable to sell individual-size portions of fruited organic yogurt at local food stores. Natural-Maid could further process each batch of plain yogurt into 6,400 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Natural-Maid would sell each individual portion for $0.58. Packaging would cost $0.10 per portion, and fruit would cost $0.11 per portion. Fixed costs would not change.
Should Natural-Maid 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?