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Social Science Clinic => Accounting => Topic started by: waynest on Jan 4, 2020

Title: Steins' Dairy processes 4,000 hectolitres (hL) of fluid raw milk per month. One hectolitre equals ...
Post by: waynest on Jan 4, 2020

Steins' Dairy processes 4,000 hectolitres (hL) of fluid raw milk per month. One hectolitre equals 100 litres. After the raw milk is received at the dairy it is separated by machines into cream and liquid skim milk. The cost of processing the 4,000 hL of raw milk up to the split off point to yield 1,000 hL of cream and 3,000hL of liquid skim milk is $345,000. The selling price of cream is $155.00 per hectolitre and the selling price of liquid skim milk is $75.00 per hectolitre. Steins` Dairy has the opportunity to process further all of its cream production into whipping cream which will sell for $385 per hL. The cost of processing 1,000hL of cream to net 800 hL of whipping cream is $135,000.  Should Steins` sell the cream or process it into whipping cream. Show the expected net revenue difference between the two alternatives.

Title: Steins' Dairy processes 4,000 hectolitres (hL) of fluid raw milk per month. One hectolitre equals ...
Post by: helenmarkerine on Jan 4, 2020

Decision:  Process cream into whipping cream.

Title: Re: Steins' Dairy processes 4,000 hectolitres (hL) of fluid raw milk per month. One hectolitre equal
Post by: Darryl Halim on Apr 16, 2020

Thanks

Title: Re: Steins' Dairy processes 4,000 hectolitres (hL) of fluid raw milk per month. One hectolitre equal
Post by: Anirudh Mohan on Apr 17, 2020

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Thank you

Title: Re: Steins' Dairy processes 4,000 hectolitres (hL) of fluid raw milk per month. One hectolitre equal
Post by: Арбак Восканян on Jul 29, 2020

thank you

Title: Re: Steins' Dairy processes 4,000 hectolitres (hL) of fluid raw milk per month. One hectolitre equal
Post by: Divyansh Agrawal on Jul 29, 2020

Hh