Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

After having spent two years of your only life to study business administration you feel ready to start your own enterprise. Fortunately your grandmother has

image text in transcribed

image text in transcribed
After having spent two years of your only life to study business administration you feel ready to start your own enterprise. Fortunately your grandmother has left you a farm with a plot of land, comprising 200.000 sqm. To make use of your property you decided to become a slow moving farmer. In this context your best friends have raised the idea to start with goats (Nanny Goats), bees and chicken. After weeks of careful investigations you came to an investment plan: Milk Goats (units) Honey Bees (swarms) Chicken (units) Number 10 50 500 Price Unit 100 Euro 50 Euro 10 Euro Fencing 4.800 Euro 5.600 Euro Shelter 5.000 Euro 5.000 Euro 5.000 Euro Mechanical Assistance 6.000 Euro Production Equipment 10.000 Euro 5.000 Euro AC 2.500 Euro 2.500 Euro After drowning your worries you start thinking of the economics of your idea: A goat is expected to produce 31 of milk per day, you would need 101 of milk to produce 1kg of high quality cheese. Per kg of cheese you expect revenues of 35 Euro. To dress it nicely you plan to spend 2 Euro per kg. A swarm of high quality honeybees can produce an average of 100kg honey per year. The sales price on local markets is at 5,00 Euro per 250g. You calculate the production costs to be 2 Euro per kg. The chicken you have chosen to start with produce at an average 300 eggs per year. The price per egg is at 0.30 Euro. To keep the chicken happy and healthy you need 200g dry food per day. A 50kg bag cost you 20 Euro. To present the eggs appropriately you calculate a luxury egg box which costs you 0,50 Euro each

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Concepts and Applications

Authors: Stephen Foerster

1st edition

013293664X, 978-0132936644

More Books

Students also viewed these Finance questions

Question

How do you find marginal and total benefit and how are they used?

Answered: 1 week ago