Question: Heather is considering adding replacing 3 2 0 acres of edible green peas with 3 2 0 acres of red lenfils. On their remaining 1

Heather is considering adding replacing 320 acres of edible green peas with 320 acres of red lenfils. On
their remaining 1280 acres, they will seed 960 acres to Canola and 320 to Feed Barley. They use a
custom harvester to harvest all their acres. The rate for custom combining in their area is $35 per acre.
They want to use a parfial budget to see the financial impacts of this change. Below is a table of
historical and projected costs for the crops Heather has grown and harvested recently, along with
projected costs and expenses for.
Crop Per acre yield
(Historical or
Expected)
Expected Price Per acre variable
costs
Per acre overhead
costs
Canola 42 bu.17.50428230
Feed Barley 70 bu.6.15315230
HRS Wheat 53 bu.10.15360230
Red Lenfils 1850 lbs.0.33/ lb.242230
Edible Green Peas 43 bu.13.00290230
Oats 79 bu.5.19263230
a. Construct a parfial budget that outlines this proposed change.
b. How does this change affect per acre profitability?
c. Should Heather make this change? Why or why not?
d. At what yield per acre of the new crop would Heather be indifferent between these choices?

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