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4. Your neighbor has a small plot of land located in the outskirts of Ankara where she grows potatoes year- round. She has compiled some
4. Your neighbor has a small plot of land located in the outskirts of Ankara where she grows potatoes year- round. She has compiled some data and calculated that each kilo of potatoes she harvests costs her TL28.75. This cost is based on the fact that she goes to her land 20 times during the year and each time she goes, she harvests about 20 kilograms of potatoes. Based on the information given below and your understanding of "relevant costs", determine whether her cost estimate of T28.75 per kilo of potatoes is correct. Explain. (Calculations required) Cost of the truck that your neighbor drives to the potato field (Cost TL30,000, usable for 10 years, 20 trips per year) Gasoline for the truck Insurance for the truck (Average per trip) Travel expenses to and from the potato field (100 kilometers @TL0.25 per kilometer: TL0.18 for motor oil and tires, TL0.07 for depreciation) TL150 45 130 25 New farming equipment purchases for this year (Allocated over 20 trips to the potato field) Annual farming license fee Miscellaneous expenses Food Beverages Traffic fine received on the way to the potato field Total cost per trip 25 35 50 40 35 40 TL575
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