1 Do Homework-Ethan Watts Google Chrome https://www.mathxl.com/Student/PlayerHomework.aspx?homeworkId=515494035&questionId=1&flushed=false&cid=5348755¢erwin ts ACC 2023 Spring 2019 MW Herring Homework: Chapter 8 Homework Score: 0 of 1 pt E8-28A (similar to) 6 of 7 (3 complete) ? X Ethan Watts 3/19/19 2:37 PM Save HW Score: 27.68%, 1.94 of 7 pts Question Help Dairyplus processes organic milk into plain yogurt. Dairyplus sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $870, yields 675 gallons of plain yogurt. The company sells the one-gallon tubs for $5.00 each and spends $0.12 for each plastic tub. Dairyplus 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. Dairyplus could further process each batch of plain yogurt into 14,400 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Dairyplus would sell each individual portion for $0.52. Packaging would cost $0.06 per portion, and fruit would cost $0.11 per portion. Fixed costs would not change. Should Dairyplus 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.) Sell as gallon-size Sell as individual containers portions Less: Net benefit per unit Net benefit per batch Choose from any list or enter any number in the input fields and then click Check Answer. 1 part remaining Clear All ?
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For the first alternative, selling only gallon-sized plain yogurt, we need to calculate the net benefit per batch. To do this, we need to subtract the cost per batch from the revenue per batch. Show more…
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