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Deep South Dairy Gathered the Following Data About the Two

Question 19

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Deep South Dairy gathered the following data about the two products that it produces:  Current Sales  Estim ated Added  Sales Value if  Product  Value  Processing Costs  Processed Further  Milk $8,000$2,000$11,000 Yogurt 12,0007,00018,000\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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