BA-213-0-20773 - Managerial Accounting
Homework: Chapter 08 Graded Homework
Score: 0 of 4 pts
E8-31A (similar to)
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Alexander Ghossein 05/11/20 11:15 AM
HW Score: 0%, 0 of 30 pts
Question Help
Organicmaid processes organic milk into plain yogurt. Organicmaid sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $810, yields 525 gallons of plain yogurt. The company sells the one-gallon tubs for $6.00 each and spends $0.12 for each plastic
tub. Organicmaid 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. Organicmaid could further process each batch of plain yogurt into 11,200 individual portions (3/4 cup each) of fruited yogurt. A recent
market analysis indicates that demand for the product exists. Organicmaid would sell each individual portion for $0.44. Packaging would cost $0.05 per portion, and fruit would cost $0.09 per portion. Fixed costs would not change. Should Organicmaid 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
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.