Question: how to solve this:Problem: NET PROFIT Using the following example make a budget sheet just as corn example identfying all components as in corn and
how to solve this:Problem: NET PROFIT Using the following example make a budget sheet just as corn example identfying all components as in corn and calculate the net profit. Also, there is a question at the end that relates to opportunity cost, don't forget to answer that. I have provided the format in budget sheet. Crop: Dryland soybeans Units: Bushels Price: $6.00 Quantity (per acre) 40 Total acres: 100 Land taxes: $600 Fertilizer: $ 4,000.00 Seed: $2,500.00 Chemicals: $2,000.00 Machinery $2,000 Insurance: $650 Fuel: $1,000 Machine hire: $800 Supplies: $400 Repairs: $1,000 Land interest: $1,400 Labor: $700 GROSS INCOME Description Per Unit quantity Unit Quantity Quantiy Unit $/Unit Total VARIABLE COST DESCRIPTION Total Cost Average cost per acre FIXED COST DESCRIPTION Total Cost Average cost per acre Net Profit ( Total Revenue- Total Cost) Total Average per acre Opportunity Cost Q:Say another producer offers renting this land from you for $135 per acre. Should you rent out or farm yourself and why? (Please do not include any other reasons but economic reason) Answer below
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