$10$

Question $15,$ EM$10-20($similar to$)$

HW Score: $64\mathrm{.}96\%,9\mathrm{.}74$ of $15$ points

Part $1$ of $2$

Points: $0$ of $1$

Dairymaid processes organic milk into plain yogurt.

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Costs

Expected revenue from selling by the gallon

Expected revenue from selling individual portions

Additional costs of selling as is by the gallon

Additional costs of processing individual portions

Total net revenue

More info

Dairymaid sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one$-$gallon containers. Each batch, processed at a cost of $$860,$ yields $900$ gallons of plain yogurt. Dairymaid sells the one$-$gallon tubs for $$6$ each, and spends $$0\mathrm{.}18$ for each plastic tub. Dairymaid has recently begun to reconsider its strategy. Dairymaid wonders if it would be more profitable to sell individual$-$size portions of fruited organic yogurt at local food stores. Dairymaid could further process each batch of plain yogurt into $19,200$ individual portions $(\frac{3}{4}$ cup each$)$ of fruited yogurt. A recent market analysis indicates that demand for the product exists. Dairymaid would sell each individual portion for $$0\mathrm{.}60.$ Packaging would cost $$0\mathrm{.}07$ per portion, and fruit would cost $$0\mathrm{.}09$ per portion. Fixed costs would not change.

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