Question
A farmer produces one thousand crates of apples. The total and aggregate costs of production are $48,000. The farmer enters a forward contract for the
A farmer produces one thousand crates of apples. The total and aggregate costs of production are $48,000. The farmer enters a forward contract for the entire harvest to hedge at a forward price of $69 per crate at harvest time of 1000 crates. The market price of apples at harvest time is $70 per crate. What is the farmers profit?
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
7th Edition
978-0470477151, 978-0-470-5562, 470556242, 0-470-55624-2, 9780470556245, 978-0470507018
