answer all (b) A 50 kW combine harvester has an initial purchase price of $25,000.00. It operates

answer all

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(b) A 50 kW combine harvester has an initial purchase price of $25,000.00. It operates at a ed for agricultural machinery. speed of 8 km/h. The rated operating width of the machine is 2 m. The annual utilisation of the combine is 216 ha. The field efficiency is 75 per cent. Other relevant data are as follows: Interest on investment Fuel consumption Cost of fuel Lubricant consumption Insurance Housing 5% of initial purchase price of combine 15 litres per hour $0.50 per litre 18% of fuel cost 0.25% of initial purchase price 1.00% of initial purchase price Repairs and maintenance cost 20% of initial purchase price $6.50 per hour Hiring cost $74.07 per hectare Labour charge Assume that the straight-line method of depreciation is applicable and that the period of depreciation is 10 years. Also, assume that the salvage value of the combine is 10% of the purchase price of the combine and that there is no tax levied on the combine. (i) (ii) (iii) (iv) Find the total harvesting cost per hectare Compute the variable cost per hectare Determine the break-even point Find the break-even cost (b) A 50 kW combine harvester has an initial purchase price of $25,000.00. It operates at a ed for agricultural machinery. speed of 8 km/h. The rated operating width of the machine is 2 m. The annual utilisation of the combine is 216 ha. The field efficiency is 75 per cent. Other relevant data are as follows: Interest on investment Fuel consumption Cost of fuel Lubricant consumption Insurance Housing 5% of initial purchase price of combine 15 litres per hour $0.50 per litre 18% of fuel cost 0.25% of initial purchase price 1.00% of initial purchase price Repairs and maintenance cost 20% of initial purchase price $6.50 per hour Hiring cost $74.07 per hectare Labour charge Assume that the straight-line method of depreciation is applicable and that the period of depreciation is 10 years. Also, assume that the salvage value of the combine is 10% of the purchase price of the combine and that there is no tax levied on the combine. (i) (ii) (iii) (iv) Find the total harvesting cost per hectare Compute the variable cost per hectare Determine the break-even point Find the break-even cost

Answer rating: 100% (QA)

Answer i To find the total harvesting cost per hectare we need to consider all the relevant costs associated with operating the combine harvester 1 Depreciation Cost The depreciation cost can be calcu... View the full answer