Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

B. Tractor variable cost $3.20 per acre 9. Variable cost on other mach. Er equip. $ 3.65 per acre 10. Custom harvesting, hauling, etc. $13.0D

image text in transcribed
B. Tractor variable cost $3.20 per acre 9. Variable cost on other mach. Er equip. $ 3.65 per acre 10. Custom harvesting, hauling, etc. $13.0D per acre 11. Compute interest on total preharvest costs @ 8% for 6 months. Use the information above and your machinery calculations to complete the enterprise budget on the next page, then answer the following questions. 1. With yield of 35 hu. per acre, what is the break-even selling price? Ans. 2. If the selling price was only $2.35 per hu., what per acre yield would he necessary to break-even? Ans. 3. If the expected yield was only 30 hu. per acre, what selling price would he required to just break-even on the operation? Ans. 4. According to your budget, what is the Cost of Production per bu.? Cost of production is the same as break-even price at yield of 35 Ans. 5. Would you sign this lease and purchase the machinery? WHY? 6. I_f you had already signed the lease and purchased the machinery, how low must the price of wheat fall before you should stop production

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_2

Step: 3

blur-text-image_3

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

Fundamental accounting principle

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

21st edition

1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587

More Books

Students also viewed these Accounting questions

Question

Why should goals be specific and measurable?

Answered: 1 week ago