Question - ED Products has decided that buttermilk may sell better if it was marketed for baking and sold in pints. This would involve additional packaging at an incremental cost of $0.35 per pint. Each pint could be sold for $0.75 (note one quart = two pints)
Requirements
1. If ED use the sales value at split off method, what combination of products should ED sell to maximize profits?
2. Prepare an analysis for ED management that compares processing the butter further with selling the product immediately at split off.