3. If you were Junior Wells and you started your analysis of "Superpens" by just ana- lyzing Chaparral's finish-ration cattie, how would you approach the analysis? Would this innovation make sense if the pens cost him $10,000 each to upgrade?

4. If Wells decides to implement intensive feeding, how much will his costs increase if he feeds his animals with the same frequency as the Researcher? Coupled with a 4% improvement in conversion, what is the net impact on Wells' bottom line? Does it make more sense for Wells to use a 4% improvement in conversion to reduce the holding period per cow by 4% or to increase the selling weight by 4%?

5. Where would you focus your future management efforts if you were Fred Wells?

6. Assuming that the conversion rates do not change (pounds of feed per pound of weight gain), does it make more sense for Wells to purchase 500-pound animals directly from CowlCalf operators, or 750-pound animals from Stocker operators? The 500-pound animals will finish at 1050_ Assume that both calves will gain weight at the same rate per day and the total ration cost won't change (9.2 ration pounds per a pound of weight gain x 500 pounds gained = 5,060 pounds of ration per calf. Assume that a 500-pound animal costs the feedlot $5.00/cwt, more than a 750 pounds animal because the extra 250 pounds is not viewed as equally high-quality meat