A agri firm has a total fixed cost of $200,000 per year year, an average unit cost of$800 per unit and an average revenue of $1200 per unit, and operational efficiency of 97.5%. You are required to budget for the following (1) Breakeven point for this firm (2)Gross profit of $850,000 (3) Breakeven and gross profit if the average cost rises to $1000

NGRZ2 16 2018 Micret Word ten others Par Layout Reference Malinas AGB232 Intermediate Agribusiness Management Assignment due Friday 10/04/2020 (20 marks) EM Syampaku, Lecturer An agri-firm has a total fixed cost (TFC) of K200,000 per year, an average unit cost of K800 per unit an average revenue (AR) of K1,200 per unit, and operational efficiency of 97.5%. You are required to budget for the following: Breakeven point for this firm [4 marks] (ii) Gross profit of K850,000 [8 marks] (iii) Breakeven and Gross profit if average cost rises K1,000 (8 marks) A horticulturalist with farm area of 10 ha grows green maize on 5 ha, cabbages on 3 ha and tomato on 2 ha. This farmer wishes to increase the number of tomato from 2 ha to 4 ha by transferring part of farmland from maize production to tomato production due to favourable prices and increased demand for tomato. The cost of maize production is K15,000 per ha for all costs. Tomato costs K16,000 per ha. Cabbage costs K12,000 per ha. Tomato income is K50,000 per ha, green maize is K40,000 per ha and Cabbage is K60.000 per ha. Interest rate on inputs is 30%. Green maize takes 3 months to point of sale whereas tomato and Cabbage take 4 months each. Prepare a partial budget and advise on the course of action for this farmer. [20 marks] 15:26 Word 274 SO . : 07-Apr-20