Best Dairy processes organic milk into plain yogurt. Best Dairy sells plain yogurt to hospitals, nursing...

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Best Dairy processes organic milk into plain yogurt. Best Dairy sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $830, yields 645 gallons of plain yogurt. The company sells the one-gallon tubs for $8.00 each and spends $0.12 for each plastic tub Best Dairy 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. Best Dairy could further process each batch of plain yogurt into 13,760 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Best Dairy would sell each individual portion for $0.40. Packaging would cost $0.07 per portion, and fruit would cost 50.09 per portion. Fixed costs would not change. Should Best Dairy continue to sell only the gallon-sized plain yogurt (sell as is) or convert the plain yogurt into d: individual-sized portions of fruited yogurt (process further)? Why? ore A (sin A (sin iew 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). Sell as gallon-size Sell as individual portions Less Net benefit per unit COT Net benefit per batch containers 16A Best Dairy processes organic milk into plain yogurt. Best Dairy sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $830, yields 645 gallons of plain yogurt. The company sells the one-gallon tubs for $8.00 each and spends $0.12 for each plastic tub Best Dairy 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. Best Dairy could further process each batch of plain yogurt into 13,760 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Best Dairy would sell each individual portion for $0.40. Packaging would cost $0.07 per portion, and fruit would cost 50.09 per portion. Fixed costs would not change. Should Best Dairy continue to sell only the gallon-sized plain yogurt (sell as is) or convert the plain yogurt into d: individual-sized portions of fruited yogurt (process further)? Why? ore A (sin A (sin iew 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). Sell as gallon-size Sell as individual portions Less Net benefit per unit COT Net benefit per batch containers 16A

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Sales revenue per unit Less Extra processing costs per unit... View the full answer