1) What is the cost of production?

A. $2.55/bu

B. $4.12/bu

C. $214.10/acre

2) What is the break-even yield?

A. 42.82 bu/acre

B. 16.20 bu/acre

C. 52.00 bu/acre

3) What is the break-even price?

A. $2.55/bu

B. $4.12/bu

C. $5.00/bu

D. $214.10/acre

Wheat Enterprise Budget (one acre, one year) Unit Quantity Price Amount Item Revenue Wheat grain Total Revenue bushel 52 $5.00 $260.00 $260.00 lb Operating Expenses (aka variable costs) Seed Fertilizer Chemicals, Fuel and Repairs Labor Total Operating Expenses Ib acre hour 75 $0.20 $15.00 120 $0.32 | $38.40 1 $23.40 $23.40 7 $8.00 $56.00 $132.80 Ownership Expenses (aka fixed costs) Machinery depreciation Machinery interest Other ownership expenses (land) Total Ownership Expenses Total Expenses acre acre acre 1 1 1 $14.20 $10.60 $56.50 $14.20 $10.60 $56.50 $81.30 $214.10 Profit $45.90