Fall 2019 Assignment 19 AGEC 325 Name if we cannot read your answer, you will not receive credit for it. There is no partial credit for an answer. Your answer is either right or it is wrong. Cow-Calf Budget Spring Calving, Sell at 225 days of age Item Quantity/Unit Total Value Price Per Unit 425 lb $80/cwt. $__ 92 $ 39 2.6 ton 3 ton $15/ton $60/ton 180 $225 $12 Receipts Feeder Calf Sale Cull Cows and Bulls Total Receipts Variable Costs Feed Pasture (Hay Equiv) Hay (grass) Salt & Mineral Total Feed Costs Health Program Marketing Supplies & Misc. Int. on Operating Capital Total Variable Costs Fixed Costs Labor Charge Cow Replacement Bull Replacement Int. on Breeding Stock Fence & Facilities Management Charge Total Fixed Costs Total Costs 17 12 $135 12mo 996 $281 8 hours $7.50/hr. $60 120 13 $591 9% 53 37 5% of gross revenue $305 $586 Use this cow.calf budget to answer the following questions. Some values will need to be calculated in order to provide the requested information and values. Show your work to receive credit for the correct answer. AGEC 325 Assignment 19 Fall 2019 1. How much is the projected Gross Revenue in dollars for the cow-calf budget? (4 points) 2. How much is the projected Gross Margin in dollars for the cow.calf budget? (4 points) 3. How much is the projected Profit in dollars for the cow-calf budget? (4 points) 4. How much is the projected Net Income in dollars for the cow-calf budget, assuming management, labor and operating capital are supplied by the operator? (4 points) 5. What is the Breakeven selling price needed for the feeder calf, to pay total costs for the cow-calf budget? (4 points) 6. In the short run, would you recommend that this producer continue this enterprise? Explain your answer. (5 points) Fall 2019 Assignment 19 AGEC 325 Name if we cannot read your answer, you will not receive credit for it. There is no partial credit for an answer. Your answer is either right or it is wrong. Cow-Calf Budget Spring Calving, Sell at 225 days of age Item Quantity/Unit Total Value Price Per Unit 425 lb $80/cwt. $__ 92 $ 39 2.6 ton 3 ton $15/ton $60/ton 180 $225 $12 Receipts Feeder Calf Sale Cull Cows and Bulls Total Receipts Variable Costs Feed Pasture (Hay Equiv) Hay (grass) Salt & Mineral Total Feed Costs Health Program Marketing Supplies & Misc. Int. on Operating Capital Total Variable Costs Fixed Costs Labor Charge Cow Replacement Bull Replacement Int. on Breeding Stock Fence & Facilities Management Charge Total Fixed Costs Total Costs 17 12 $135 12mo 996 $281 8 hours $7.50/hr. $60 120 13 $591 9% 53 37 5% of gross revenue $305 $586 Use this cow.calf budget to answer the following questions. Some values will need to be calculated in order to provide the requested information and values. Show your work to receive credit for the correct answer. AGEC 325 Assignment 19 Fall 2019 1. How much is the projected Gross Revenue in dollars for the cow-calf budget? (4 points) 2. How much is the projected Gross Margin in dollars for the cow.calf budget? (4 points) 3. How much is the projected Profit in dollars for the cow-calf budget? (4 points) 4. How much is the projected Net Income in dollars for the cow-calf budget, assuming management, labor and operating capital are supplied by the operator? (4 points) 5. What is the Breakeven selling price needed for the feeder calf, to pay total costs for the cow-calf budget? (4 points) 6. In the short run, would you recommend that this producer continue this enterprise? Explain your answer. (5 points)
