Question: Develop a break-even analysis equation using the data below examining purchasing Farm A vs. Farm B for the purpose of stall rental opportunities during the
Develop a break-even analysis equation using the data below examining purchasing Farm A vs. Farm B for the purpose of stall rental opportunities during the 5-month winter high season (December-April).
Plot a break-even analysis model in excel (or by hand) for both Farm A vs. Farm B.
Farm A:
20 stalls on property
Stall rental: $20,000/stall for the season
Expenses:
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| Maintenance | $150,000 |
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|
| Property tax | $182,900 |
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| Association fees | $10,404 |
| |
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| Property tax | $42,969 |
| |
|
| Insurance | $ 69,756 |
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| Total Expenses = $456,029 | ||||
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Farm B:
20 stalls on property
Stall rental: $12,000/stall for the season
| Expenses | ||||
|
| Maintenance | $200,000 |
| |
|
| Property tax | $152,220 |
| |
|
| Association fees | $5,400 |
| |
|
| Property tax | $105,709 |
| |
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| Insurance | $ 58,056 |
| |
| Total Expenses = $521,385 | ||||
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