The management of the Southern Cottonseed Company has engaged you to assist in the develBREAK-EVEN opment of information to be used for managerial decisions. The company has the capacity to process 20,000 tons of cottonseed per year. The yield of a ton of cottonseed is as follows: pg56

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Average yield per ton of cottonseed Average selling price Product (in pounds) per trade unit Oil 300 $ .15 per lb Meal 600 50.00 per ton Hulls 800 20.00 per ton Lint 100 3.00 per cwt 200 Waste A special marketing study revealed that the company can expect to sell its entire output for the coming year at the listed average selling prices. You have determined the company's cost to be as follows: Processing costs: Variable Fixed... $9 per ton of cottonseed put into process $108,000 per year