Question: A. Between Crops Using Enterprise Budgets Breakeven analysis can help make inter-comparisons between crops by using o compare breakeven levels of price or yields for
A. Between Crops Using Enterprise Budgets Breakeven analysis can help make inter-comparisons between crops by using o compare breakeven levels of price or yields for given level of costs. Or to comeudgets hds or costs needed for crops to compete with one another in terms of profitability Prices, alculating the following break-even values Variable Fixed Costs/Acre Costs/Acre VC B/E Price B/E Price Yield/Acre 120 750 TC Corn S360 S120 Cotton Lint- $400 $175 Seed Value 1.. Calculate a.) 2. d. If the corn price is $5.00 per bushel, yield 100 bushels per acre and variable costs $450 per acre what is the net return over variable costs? If the cotton lint price is S.60 per pound, yield of lint 800 Ibs per acre, cotton seed costs? revenue $100 per acre and variable costs $400 per acre what is the net return over variable 3. Calculating Break-even price using differences in net return: The following comes from the equation: (Crop 1 Price x Crop Yield 1)- Variable cost Crop 1- (Crop 2 Price xCrop Yield 2)- Variable cost Crop2 4. Using the table above, what is the difference in net return between corn and cotton? Net Return over variable costs Cotton Net Return over variable costs Corn Difference: 5. At $5.00 per bushel for corn how many more bushels must be produced per acre to equa the difference between the net return on cotton and corn? 6. Corn vs Soybeans: What price must be achieved for soybeans to break-even on the profit of corn given the following values? Price $6.00 Yield 100 50 Variable Costs Corn Soybeans S S350 S300
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