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The Dairy Division of Famous Foods, Inc. produces and sells milk to outside customers. The operation has the capacity to produce 200,000 gallons of milk a year. Last year's operating results were as follows:

Sales (160,000) gallons $500,000 Variable costs 312,000 Contribution margin 188,000 Fixed costs 100,000 Net Income $ 88,000 Assume the Yogurt Division wants to purchase 30,000 gallons of milk from the Dairy Division. The minimum price that will increase the Dairy Division's profit is a) $0.55 per gallon. b) $1.95 per gallon. c) $2.50 per gallon. d) $1.18 per gallon.

In practice, the large majority of service encounters are routine, involving a high level cognitive processing and little affect

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