Making sell or process further decisions NaturalMaid processes organic milk into plain yogurt. NaturalMaid sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon...

Making sell or process further decisions

NaturalMaid processes organic milk into plain yogurt. NaturalMaid sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $840, yields 300 gallons of plain yogurt. NaturalMaid sells the one-gallon tubs for $5 each and spends $0.14 for each plastic rub. NaturalMaid has recently begun to reconsider its strategy. NaturalMaid wonders if it would be more profitable to sell individual-size portions of fruited organic yogurt at local food stores. NaturalMaid could further process each batch of plain yogurt into 6,400 individual portions (3/4 cup each) of fruited yogurt. Recent market analysis indicates that demand for the product exists. NaturalMaid would sell each individual portion for $0.58. Packaging would cost $0.10 per portion, and fruit would cost $0.11 per portion. Fixed costs would not change. Should NaruralMaid continues to sell only the gallon-size plain yogurt (sell as or convert the plain yogurt into individual-size portions of fruited yogurt (process further)? Why?