Delightful Dairy Corporation buys unprocessed cows\' milk from local farmers. At

Question

Delightful Dairy Corporation buys unprocessed cows' milk from local farmers. At the dairy, This unprocessed milk is broken down into cream and low-fat milk. The cream can be sokld at this point or can be further processed into butter. Which of the following would be relevant the decision to futher process the cream into butter? The amount paid to the farmers to purchase the unprocessed milk the cost of breaking down the unprocessed milk into cream and low-fat milk the porton of corporate fixed expenses that are currently being allocated to cream. None of the above.

Explanation / Answer

Answer a) the amount paid to the farmers to purchase the unprocessed milk

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