Deep South Dairy Gathered the Following Data About the Two

question 72

Multiple Choice

Deep South Dairy gathered the following data about the two products that it produces: $\begin{array}{llrr}& \text { Current Sales } & \text { Estimated Added } & \text { Sales Value if } \\\text { Product }&\text { Value } & \text { Processing Costs } & \text { Prosed Further }\\\hline\text { Milk } & \$ 8,000 & \$ 2,000 & \$ 11,000 \\\text { Yogurt } & 12,000 & 7,000 & 18,000\end{array}$ Which of the products should be processed further?

• A) Milk, because profits increase by $1,000, whereas Yogurt results in decrease of profit
• B) Yogurt, because profits increase by $1,000, which exceeds the profits increased by Milk
• C) Both products, because revenue will increase by $9,000 for Milk, and by $6,000 for Yogurt
• D) Both products, because profits for Milk will be $1,000, and profit for Yogurt will be $1,000

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