2. Using the USDA National daily cattle and beef summary Des Moines, Iowa; calculate the total cost of the 2 pens of cattle listed below. The feedlot is locate 400 miles from the packing plant and it will cost $3.75/mile to transport the cattle to the packing plant. The cattle will have a 2% shrink on the trip. You can either sell the cattle on a base carcass price of $209/cwt, or sell them on a cutout value depending on their carcasses quality and yield. Yield grade 4 and 5 carcasses receive a $20/cwt discount.

Pen 1 170 head of heifers that on average have the following carcass characteristics:

Live Weight = 1530#

DP = 61.0%

FT = 0.85

REA = 15.0

KPH = 2.5%

Maturity = A¹⁰

Marbling Score = MT⁵⁰

Yield Grade= 4

Pen 2 165 head of steers that on average have the following carcass characteristics:

Live Weight = 1625#

DP = 63.5%

FT = 0.50

REA = 13.5

KPH = 3.5%

Maturity = A⁶⁰

Marbling Score = MD²⁰

Yield Grade= 2