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Breakeven analysis can help make inter-comparisons between crops by using enterprise budgets to compare breakeven levels of price or yields for given level of costs.

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Breakeven analysis can help make inter-comparisons between crops by using enterprise budgets to compare breakeven levels of price or yields for given level of costs. Or to compared prices, yields or costs needed for crops to compete with one another in terms of profitability alculating the following break-even values: B/E Price B/E Yield/Acre Variable Fixed VC osts/Acre Costs/Ac TC 120 S360 orn Cotton Lint-Seed Value a. 750 $400 $175 1.. Calculate a.) 2. If the corn price is $5.00 per bushel, yield 100 bushels per acre and variable costs S450 per acre what is the net return over variable costs? 3. If the cotton lint price is S.60 per pound, yield of lint 800 Ibs per acre, cotton seed revenue $100 per acre and variable costs $400 per acre what is the net return over variable costs? Calculating Break-even price using differences in net return: The following comes from the equation: Crop 1 Price x Crop Yield 1)- Variable cost Crop 1 (Crop 2 Price x Crop Yield 2) - Variable cost Crop 2 4. Using the table above, what is the difference in net return between corn and cotton

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