1. Calculate TR, TVC, TFC, TC, AVC, AFC, ATC

1. Hans Fernandez Pineda, a Michigan crop producer, is deciding whether he should produce corn or not in 2021. Note, Hans used historical 2019 corn yield per acre for Michigan from the USDA NASS found here: LINK; and the CME September 2021 corn price found here: LINK. Based on the budget below, what should Hans do? Calculate TR, TVC, TFC, TC, AVC, AFC, ATC below for one acre of corn. (Write your final answer in the shaded yellow boxes below by replacing the words BLANK X; each box is worth 1 point- 8 points total) Corn budget, one acre Revenue Yield per acre 149 Price per bushel $3.80 Total revenue ($/acre) BLANK 1 Variable Costs Fertilizer $ 130.00 Pesticides $ 70.00 Seed $ 114.00 Drying $ 20.00 Storage $ 12.00 Crop Insurance $ 24.00 Fuel $ 17.00 Utilities $ 5.00 Labor (variable) $ 30.00 Total Variable Costs ($/acre) BLANK 2 Fixed costs Labor (Fixed) $ 20.00 Building repairs and depreciation $ 28.00 Insurance $ 12.00 Interest 12.00 Misc $ 10.00 Land rent $ 200.00 Total Fixed Costs ($/acre) BLANK 3 Total Costs ($/acre) BLANK 4 Profit ($/acre) BLANK 5 Average variable cost ($/bushel) BLANK 6 Average fixed cost ($/bushel) BLANK 7 Average total costs ($/bushel) BLANK 8