Wholesome Dairy processes milk. The cost of the milk processing is $1,350,000. Wholesome is looking to increase its net income and is exploring the possibility of expanding its products to include cream and/or ice cream. It takes 2 gallons of milk to make a half gallon of ice cream. Product Units Produced Selling Price Additional Processing costs Milk 810,000 gallons $ 3.07 per gallon Ice Cream ? 6.17 per half gallon $ 0.30 per half gallon Required: 1. How many half gallons of ice cream can Wholesome make? 2. What are the additional processing costs to convert the milk to ice cream? 3. Should Wholesome sell the milk or process it further and sell ice cream?
Answers: 1
Business, 21.06.2019 20:40, blackops3318
Afirm that makes electronic circuits has been ordering a certain raw material 250 ounces at a time. the firm estimates that carrying cost is i = 30% per year, and that ordering cost is about $20 per order. the current price of the ingredient is $200 per ounce. the assumptions of the basic eoq model are thought to apply. for what value of annual demand is their action optimal?
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Business, 21.06.2019 21:40, jfarley259
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Business, 22.06.2019 11:00, PanjiUR9220
What is the correct percentage of texas teachers charged with ethics violations each year?
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Wholesome Dairy processes milk. The cost of the milk processing is $1,350,000. Wholesome is looking...
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