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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

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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

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