18 The graph below represents the costs and the returns of this hypothetical cattle feeding scenario. The table is based on one head of cattle. Marginal Physical Product Marginal Marginal Value Product Input Cost XXX XXX XXX 0.200 0.280 0.10 0.167 0.033 0.10 0.150 0.188 0.10 0.150 0.106 0.10 Feed Average Weight Gain Selling Total Revenue Required (lbs) (lbs) Physical Weight (lbs) (hd) Product 0 0 600 $840.00 XXX 500 100 700 $980.00 0.200 1.100 200 800 $1,000.00 0.182 1,700 290 890 $1,112.50 0.171 2,300 380 980 $1,176.00 0.165 2.900 470 1070 $1,284.00 0.162 3,500 550 1150 $1,322.50 0.157 4,100 625 1225 $1,372.00 0.152 4,700 695 1295 $1.450.40 0.148 5,300 765 1365 $1,542.45 0.144 5.900 825 1425 $1,610,25 0.140 6,700 865 1465 $1.582.20 0.129 7.300 900 1500 $1,620.00 0.123 0.150 0.180 0.10 0.133 0.064 0.10 0.125 0.083 0.10 0.10 0.117 0.131 0.117 0.153 0.10 0.10 0.100 0.113 0.071 0.028 0.007 0.10 0.10 0.054 Using what you have learned about marginal principles, answer the following questions based on the data in the table above: 1. What is the profit-maximizing weight at which to sell fed cattle? Why? 2. What factors (list two) contribute to the declining profits at the higher market weight levels? 3. Hint: Figure the profit levels for each line on the chart to help you determine your answers. Here is the MS Excel file I used to create the table if you would like to reference it. BUS-336 Cattle Feeding Problem.xlsx 18 The graph below represents the costs and the returns of this hypothetical cattle feeding scenario. The table is based on one head of cattle. Marginal Physical Product Marginal Marginal Value Product Input Cost XXX XXX XXX 0.200 0.280 0.10 0.167 0.033 0.10 0.150 0.188 0.10 0.150 0.106 0.10 Feed Average Weight Gain Selling Total Revenue Required (lbs) (lbs) Physical Weight (lbs) (hd) Product 0 0 600 $840.00 XXX 500 100 700 $980.00 0.200 1.100 200 800 $1,000.00 0.182 1,700 290 890 $1,112.50 0.171 2,300 380 980 $1,176.00 0.165 2.900 470 1070 $1,284.00 0.162 3,500 550 1150 $1,322.50 0.157 4,100 625 1225 $1,372.00 0.152 4,700 695 1295 $1.450.40 0.148 5,300 765 1365 $1,542.45 0.144 5.900 825 1425 $1,610,25 0.140 6,700 865 1465 $1.582.20 0.129 7.300 900 1500 $1,620.00 0.123 0.150 0.180 0.10 0.133 0.064 0.10 0.125 0.083 0.10 0.10 0.117 0.131 0.117 0.153 0.10 0.10 0.100 0.113 0.071 0.028 0.007 0.10 0.10 0.054 Using what you have learned about marginal principles, answer the following questions based on the data in the table above: 1. What is the profit-maximizing weight at which to sell fed cattle? Why? 2. What factors (list two) contribute to the declining profits at the higher market weight levels? 3. Hint: Figure the profit levels for each line on the chart to help you determine your answers. Here is the MS Excel file I used to create the table if you would like to reference it. BUS-336 Cattle Feeding Problem.xlsx