Deep South Dairy Gathered the Following Data About the Two

question 19

Multiple Choice

Deep South Dairy gathered the following data about the two products that it produces: $\begin{array}{llrr}& \begin{array}{c}\text { Current Sales } \\\end{array} & \text { Estim ated Added } & \text { Sales Value if } \\\text { Product } &\text { Value }& \text { Processing Costs } & \text { Processed Further }\\\text { Milk } & \$ 8,000 & \$ 2,000 & \$ 11,000 \\\text { Yogurt } & 12,000 & 7,000 & 18,000\end{array}$ 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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Definitions:

Mutual Solution

A resolution or outcome that benefits all parties involved in a situation or negotiation.

Buyer-supplier Partnerships

Collaborative agreements between buyers and suppliers aimed at achieving mutual benefits and enhancing long-term business relationships.

Antitrust Laws

Regulations aimed at promoting competition and preventing unfair practices that could lead to monopolistic control of a market.

Cooperative Relationships

Collaborative and mutually beneficial partnerships between businesses or within an organization to achieve common goals.