Home / Expert Answers / Accounting / all-natural-processes-organic-milk-into-plain-yogurt-all-natural-sells-plain-yogurt-to-hospitals-pa461

(Solved): All Natural processes organic milk into plain yogurt. All Natural sells plain yogurt to hospitals, ...




student submitted image, transcription available below

student submitted image, transcription available below
All Natural processes organic milk into plain yogurt. All Natural sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of , yields 570 gallons of plain yogurt. The company sells the one-gallon tubs for each and spends for each plastic tub. All Natural 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. All Natural could further process each batch of plain yogurt into 12,160 individual portions ( cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. All Natural would sell each individual portion for . Packaging would cost per portion, and fruit would cost per portion. Fixed costs would not change. Should All Natural continue to sell only the gallon-sized plain yogurt (sell as is) or convert the plain yogurt into individual-sized portions of fruited yogurt (process further)? Why? 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.) 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.)


We have an Answer from Expert

View Expert Answer

Expert Answer



Step 1 of 2

Answer. ..
We have an Answer from Expert

Buy This Answer $5

Place Order

We Provide Services Across The Globe