Question
Convert 11, 000 acres of dryland sugar beet to irrigated green beans Irrigation equip. loan annual interest $6,000.00 Current revenue on dryland $110,000 Depreciation $650.00
Convert 11, 000 acres of dryland sugar beet to irrigated green beans | ||||
Irrigation equip. loan annual interest | $6,000.00 | Current revenue on dryland | $110,000 | |
Depreciation | $650.00 | Current costs to dryland farm | $12,500.00 | |
Insurance costs for new venture | $1,500.00 | Revenue from bean sales | $18,000 | |
Fertilizer & soil supplements | $25,000.00 | |||
Machinery VC | $2,000.00 | |||
Pesticide | $1,450.00 | |||
Irrigation VC | $12,750.00 | |||
Interest on VC | $1,650.00 | |||
Bean seeds | $110.00 | |||
Partial Budget | ||||
Alternative: Convert 11,000 acres of dryland sugar beets to irrigated green beans | ||||
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Additional Costs |
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Reduced Revenue |
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A. Total additional costs and reduced revenue |
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Net change in profit (B-A) |
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