Question: Should Organicplus 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
Should Organicplus 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? (Use a minus sign or parentheses or amounts that are typically shown enclosed in parentheses in a sell or process further decision.) X 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 8 Sell As Is Process Further Difference More info Organicplus sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $820, yields 600 gallons of plain yogurt. Organicplus sells the one-gallon tubs for $6 each, and spends $0.16 for each plastic tub. Organicplus has recently begun to reconsider its strategy Organicplus wonders if it would be more profitable to sell individual-size portions of fruited organic yogurt at local food stores. Organicplus could further process each batch of plain yogurt into 12,800 individual portions (3/4 cup each) of fruited yogurt A recent market analysis indicates that demand for the product exists Organicplus would sell each individual portion for $0 62 Packaging would cost $0.08 per portion, and fruit would cost $0.08 per portion Fixed costs would not change Print Done -
More info Organicplus sels plan yogutt to hosprads. nursing homes and resthuants in bua one-gaton contaners Each batch, processed at a cost of $320, welds 600galion $0.76 tor each pastic tub Organceplin has recendy begun to leconsider its. straboy Orgasicplus wonders if it wosld be more profitable to sell indrwdual sare process each batch of plan yogurt into 12.000 ind viduar portions ( 94 cip each of fruced yogut A kecent makiket aralinn indcales that demand for the pooduct cost so of per potion and trut would cout 50 ol per portion fand costs would noteninge
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