Determine the estimated change in income as a result of the following:

1. Increasing rate of nitrogen application from 60kg N/ha to 95kg N/ha using Ammosul

a. Ammosul-21% N; P895/bag (50kg/bag)

b. Cost of application= P7.50/kg N

c. Interest rate= 10% of cost of N and labor

d. Harvest increases from 60 cavans to 90 cavans at P800/cavan

d. harvest-thresher share=1/6 of gross harvest

Should you recommend the increase usage of nitrogen fertilizer? Justify answer. Use partial budget analysis format below.

Transcribed Image Text:

Partial Budget Format Proposed Change: Benefits Costs A. Additional Returns C. Additional Costs B. Reduced Costs D. Reduced Returns E. Total Benefits (A+B) F. Total Costs (C+D) Net Change in Income/Benefits (E-F) Benefit Cost Ratio (E/F) Partial Budget Format Proposed Change: Benefits Costs A. Additional Returns C. Additional Costs B. Reduced Costs D. Reduced Returns E. Total Benefits (A+B) F. Total Costs (C+D) Net Change in Income/Benefits (E-F) Benefit Cost Ratio (E/F)

Answer rating: 100% (QA)

Yes Increasing the usage of nitrogen fertilizer will yield to ... View the full answer